Donald Trump Again Expresses Desire to Purchase Greenland: Price Estimated Between $12.5 Billion and $77 Billion

Washington:Former U.S. President Donald Trump has once again expressed interest in purchasing Greenland, the autonomous territory of Denmark. The estimated price for this acquisition ranges from $12.5 billion to $77 billion, according to David Barker, a former economist at the New York Federal Reserve and a real estate developer. The estimate factors in inflation and economic growth while adjusting for the value of areas like the U.S. Virgin Islands and Alaska.

This isn’t the first time Trump has raised the idea of purchasing Greenland. He first proposed the idea in 2019, suggesting that the U.S. should acquire the territory. Greenland’s strategic significance has been valuable to the U.S. since the Cold War era. Even President Harry Truman had proposed purchasing the Danish territory for $100 million in gold back in 1946, an offer that Denmark rejected.

While buying land from a sovereign nation may seem unusual, history does provide examples of similar transactions. The U.S. has purchased several territories in the past, including the Louisiana Purchase, Alaska, and the U.S. Virgin Islands. Barker notes that Greenland’s strategic importance and its role in U.S. defense could raise its price. However, if the price were based solely on its mineral resources, it wouldn’t make a significant difference to the U.S. economy.

A report suggests that Greenland’s resources could be worth up to $1.1 trillion, but Barker dismissed this estimate as unrealistic. He argues that the U.S. wouldn’t fully benefit from these resources, as companies would buy mining rights and factor in their costs and profits.

Purchasing Greenland, however, is not as simple as a standard real estate transaction. Trump’s interest in the island is largely driven by defense purposes, but the residents of Greenland may not be interested in becoming part of the U.S. Prime Minister of Greenland, Múte Bourup Egede, has made it clear that “this island is not for sale and will never be for sale.”

Determining Greenland’s true value is a complex issue. Its GDP is approximately $3.236 billion, but its real value lies in its potential future development and its mineral resources. Other factors, such as quality of life, infrastructure, and strategic location, also contribute to its value. Greenland is rich in valuable minerals like copper and lithium, which are essential for batteries and electric vehicles.

Although purchasing national assets like the Panama Canal may seem feasible, acquiring land or territory today is an extraordinary proposition. National pride, democracy, and international norms complicate such deals. While Greenland may have a price, a transaction like this seems unlikely in today’s world. According to Barker, “Buying Greenland would be the deal of the century.”