All the Gold in Fort What's-Its-Name

By: GE Christenson | Tue, Jun 18, 2013
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The official gold holdings (rounded numbers) of the US Treasury Department are as follows:

 

Fort Knox 147,000,000 ounces
West Point 54,000,000 ounces
Denver 44,000,000 ounces
Federal Reserve of NY 13,000,000 ounces
Other 3,000,000 ounces
Total 261,000,000 ounces

 

Does anyone really think that gold is unencumbered, unleased, and actually physically there? Yes, I know...

Glad you asked that question. Why wouldn't it be there? Gold is a bit like an "anti-dollar." The Federal Reserve creates new dollars by the trillions - dollars are their product. Wal-Mart sells snow shovels and a few other things, Wall Street sells stocks and everything paper, Hollywood sells dreams and entertainment, but the Fed sells dollars, and they don't like competition. Gold has been real money for 5,000 years world-wide. Federal Reserve notes have been passed off as money for a few decades, and in that time they have lost most of their value as measured against commodities such as wheat, gasoline, and cigarettes.

It could have been worse! Western central banks (officially) and governments sold a considerable sum of gold during the 1990s to help repress the price of gold and to slow the apparent decline in the value of paper money. They also "leased" an unknown amount of gold to bullion banks who also sold that gold into the market. The leases are still "on the books," so the central banks officially still own the gold, even though it is probably long gone - likely to China, Russia, India, and the Middle East.

Yes, central banks and governments have motive, means and opportunity to suppress the price of gold. They want to support their product (dollars, euros, etc.) and to defeat the competition - gold. If you were a central banker or treasury official who was inflating his currency and consequently reducing its purchasing power, wouldn't you want to suppress the price of gold to delay recognition of your involvement in the devaluation process?

So why not just do an audit? This is a simple question with a complex set of answers. Here are a few.

Bottom line: The whole subject of an audit is fraught with potential trouble for both the Treasury and the Fed. The simple solution is to stonewall the audit question and "extend and pretend."

The problem is that the questions just won't die. GATA has researched the subject thoroughly and suggests that much of the Treasury gold is probably gone. Eric Sprott has examined the export numbers (official US government export data) and concluded that somehow the US exported about 4,500 tons of gold more than can reasonably be accounted for.

Germany asked for their gold back - a measly 300 tons - and was told it would take seven years to return their gold. It the gold was physically in the vault and unencumbered, it should have taken a few weeks at most. Seven years - really? This must seem strange to any thinking person.

From Bill Holter: "I would like to address the biggest (in my mind) conspiracy theory (fact) of all. It has been "said" for nearly 60 years that the U.S. has 8,400 tons of gold left. First off, there has been no audit done since 1956, not even Senators or Representatives (except for one time in the '70?s for glance) have been allowed to actually see the gold. "Trust us" is what the population has heard, "trust us" is what foreigners are told...trust us, trust us, trust us. The problem is that so much anecdotal evidence has been dug up by GATA and others. Eric Sprott just last month looked at the U.S. gold export numbers going back 10 years or more and found that 4,500 tons OVER AND ABOVE what are reported as production has been shipped out. Where did that gold come from? When looked at with your 3rd grade mind in gear, there is no way that the gold is really there.

... Forget about all of the past official memos uncovered. Forget all of the evidence that GATA has uncovered over the last 15 years. Forget that Germany asked for their gold and were told "wait 7 years." Forget that gold and silver prices have not acted like any other market since the mid 90′s and those prices have now crashed 3 times in the face of massive demand. Forget that 2 of the smash downs occurred WHILE the CFTC was supposedly "investigating" the silver market. Forget that 40% of the world's total gold production was sold in reckless fashion in less than 12 trading hours (who would, could, do this?) FORGET IT ALL! ...trust us. ... All of this "conspiracy stuff" when put together rather than separately makes sense."

I don't know how much gold is left, but I have two (only slightly serious) suggestions:

We don't know how much of the gold remains. Does it really matter?

Do any of the following matter?


Summary

How much physical gold do you have? How much do you want when you contemplate nearly $17,000,000,000,000 in official US government debt, another $100 - $200 Trillion in unfunded liabilities, and nothing backing that unbelievable amount of debt except the "full faith and credit" of what is clearly a government that won't balance a budget and must resort to printing dollars to pay its bills?

How much gold do you have stored in a secure (off-site) facility?

 


 

GE Christenson

Author: GE Christenson

GE Christenson aka Deviant Investor
www.deviantinvestor.com

GE Christenson

I am a retired accountant and business manager who has 30 years of experience studying markets, investing, and trading futures and stocks. I have made and lost money during my investing career, and those successes and losses have taught me about timing markets, risk management, government created inflation, and market crashes. I currently invest for the long term, and I swing trade (in a trade from one to four weeks) stocks and ETFs using both fundamental and technical analysis. I offer opinions and commentary, but not investment advice.

Years ago I did graduate work in physics (all but dissertation) so I strongly believe in analysis, objective facts, and rational decisions based on hard data. I currently live in Texas with my wife. Previously, I spent 20 years in Barrow, Alaska, the northernmost community in the United States, 330 miles north of the Arctic Circle.

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/