• Donald Trump has reignited interest in purchasing Greenland, despite Denmark's firm position that the territory is not for sale.
• Experts estimate the potential price range for Greenland between $12.5 billion and $77 billion.
• The valuation is influenced by historical purchases such as Alaska and the Virgin Islands, adjusted for GDP growth.
• National defense motives are cited as a major reason influencing the acquisition interest.
• The economic implications and historical context of similar purchases provide insight into the potential deal.

Former U.S. President Donald Trump has rekindled his interest in the acquisition of Greenland, despite Denmark’s declaration that the territory is not on the market. The conversation surrounding the potential purchase raises the question—what would it cost if negotiations were to proceed? Real estate expert and former economist at the Federal Reserve Bank of New York, David Barker, conducted a valuation exercise, suggesting that Greenland could be worth between $12.5 billion and $77 billion.

While Alaska's 1867 purchase price serves as a historical reference, it serves only as a rough comparison. Trump has indicated that a major reason for wanting to acquire Greenland would be related to national defense, a factor that was less significant in the Alaska Purchase, priced at just over $150 million in today's dollars.

Another point of reference is the United States' acquisition of the Danish West Indies, now the Virgin Islands, bought in 1917 for $25 million—equivalent to approximately $657 million today. This historical transaction was also driven by national defense considerations, leading Barker to suggest adjusting these figures according to the growth in the GDP of both the United States and Denmark.

By recalibrating the purchase price of the Virgin Islands—considering Denmark's GDP growth of over 500% since the acquisition—Barker derives a potential low-end price for Greenland at $12.5 billion. Conversely, adjusting the original cost of Alaska for America's economic expansion leads to a high-end estimate of $77 billion.

While neither comparison is perfect, Barker emphasizes that the motivations behind potential acquisitions play a significant role. The U.S. has maintained a military presence in Greenland, highlighting the territory's strategic importance as a NATO ally. Notably, Nikola Swann, head of governments and multilaterals at SwissThink, notes that if defense were not a core objective, the rationale for the acquisition could become less compelling.

For further reading, explore the original articles from The New York Times and The New York Times.