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Fort Knox U.S. Gold Reserves to be Independently Audited and Assayed? Congressman Ron Paul Pressures U.S. Treasury

Tyler Durden's picture




 

Submitted by Gold Core

Fort Knox U.S. Gold Reserves to be Independently Audited and Assayed? Congressman Ron Paul Pressures U.S. Treasury 

Gold has given up much of yesterday’s modest gains and is marginally lower in all currencies except the Swiss franc. The euro has stabilized despite continuing contagion concerns and an existential threat to the euro currency itself.


Cross Currency Rates

Gold remains close to record nominal highs in all major currencies but media coverage in the UK, Ireland and Europe remains minimal and skeptical. Focus continues to be almost exclusively on bond, equity and currency markets – with little or no coverage of gold.

The ramifications of contagion and a euro currency crisis which would lead to the price of gold in euros surging has not been covered in the media. This is of course bullish as it shows a continuing lack of understanding and appreciation of gold’s importance as a diversification and a safe haven asset.

The rout in peripheral Eurozone bond markets, and the Greek market in particular, seen yesterday has abated somewhat with prices stabilizing in most markets.  Portugal is the exception and its 10 year bond has risen to a new euro era record high of 11.124%.


World Gold Reserves, December 2010. Source Wikipedia via World Gold Council

Congressman Ron Paul, the Republican presidential candidate who is chairman of the U.S. House Financial Services subcommittee and chairs the House's Subcommittee on Domestic Monetary Policy plans to question U.S. Treasury officials next Thursday (June 23) about the U.S. gold reserves and get them to testify regarding the authenticity of the nation’s gold reserves.

This is an important question given the increasingly precarious state of the U.S.’ finances and is important to the gold market as the unaudited U.S. gold reserves are the largest holdings of gold bullion in the world (see table above).

Paul, who has said he thinks it's possible there is no gold at Fort Knox, recently said that the government is asking the American people to trust that all the gold is there, while not allowing site visits or an audit.


Foreign currency reserves and gold minus external debt based on 2010 data. Source: CIA factbook

Paul has introduced legislation that would require an independent audit of the 5,000 plus tons of gold bullion that is believed to stored in the Fort Knox, Kentucky vault. The audit would include other U.S. gold reserves held in government facilities in Denver, West Point and the New York Federal Reserve Bank in lower Manhattan.

Paul is also calling for some of the bars to be assayed and tested by a laboratory in order to prove that it is investment grade gold bullion as the U.S. Treasury Department says. There have been unconfirmed reports that the Chinese received a shipment of large gold bullion bars from the U.S. that contained tungsten.

Last August Paul said that "if there was no question about the gold being there, you think they would be anxious to prove gold is there." He has been pressing the point since the early 1980s, when he was a member of the U.S. Gold Commission.


Gold Reserves Per Capita. Source World Gold Council

Paul’s recommendation back then was that Congress audit the gold reserves. It was rejected by 15 of the Gold Commission's 17 members.

Lack of transparency leads to corruption which is one of the reasons for our current crisis.

Given the growing risks posed to the US dollar as global reserve currency, an audit is important as it may allay the concerns of GATA (Gold Anti-Trust Action Committee) and their followers about whether US gold reserves have been sold or lent into the gold market thereby artificially suppressing the gold price.

An audit might help restore faith in the dollar which is being debased with the dollar now trading at less than a 1,500th of an ounce of gold.

The US dollar has lost 97% of its value in the last 97 years – since the foundation of the Federal Reserve (see most watched video in the world on gold bullion so far in 2011 - here). The debasement has accelerated since the U.S. came off the Gold Standard in 1971.

If Ron Paul’s reasonable requests lead to an audit that establishes that the U.S. gold reserves are substantially less than the over 8,100 tons that they are meant to be, the dollar will be at risk of falling the last 3% in a shorter time frame. 

NEWS

(Reuters) -- GLOBAL MARKETS-Euro, stocks fall on Greek contagion worries
http://www.reuters.com/article/2011/06/17/markets-global-idUSLDE75G0J520110617

(Wall Street Journal) -- PRECIOUS METALS: Gold, Silver Lower In Asia; Eyes On Euro-Zone Meet
http://online.wsj.com/article/BT-CO-20110617-701732.html

(San Francisco Chronicle) -- Gold Gains in New York as Central Bank Buying May Support Demand
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/06/15/bloomberg1376-LMV0SQ07SXKX01-5P4UIGBDK20MFHF3SRB6D08NKO.DTL

(Daniels Trading) -- Purchase of gold by central banks thru April exceeds 2010 totals
http://www.danielstrading.com/resources/news/General-Financial-News/Purchase-of-gold-by-central-banks-thru-April-exceeds-2010-totals_800531799/

(Bloomberg) -- Gold Climbs for Third Day on Demand for Haven From Beleaguered Currencies
http://www.bloomberg.com/news/2011-06-16/gold-climbs-for-third-day-in-new-york-on-demand-for-currency-alternative.html

COMMENTARY

(Business Week) -- Ron Paul's Fort Knox Fever
http://www.businessweek.com/magazine/content/11_26/b4234039356718.htm

(MoneyWeek) -- What the '70s bull run can teach us about today's gold market
http://www.moneyweek.com/investments/precious-metals-and-gems/gold/money-morning-gold-bull-run-and-the-1970s-12410

(Stockhouse) -- Many a gold and silver stock moved by GATA supporters
http://www.stockhouse.com/Columnists/2011/Jun/16/Many-a-gold-and-silver-stock-moved-by-GATA-support#

(MarketWatch) -- Stock collapse and $12,000 gold?
http://www.marketwatch.com/story/stock-collapse-and-12000-gold-2011-06-16?link=MW_story_featcomm

 

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Fri, 06/17/2011 - 08:03 | 1377053 YHC-FTSE
YHC-FTSE's picture

Bollocks. I've seen this headline before. This circus of "Will we or won't we audit" has been going on since probably 1974. 

Fri, 06/17/2011 - 08:35 | 1377111 dwdollar
dwdollar's picture

 

I don't see how any good comes out of it.  If they do 'compromise' it will be a government audit and a 5 minute press conference with a select few MSM cameras pointing at a one bar thick wall of gold-plated tungsten.  Then the networks will spend a whole week trying to destroy Ron Paul's crediblity.

 

Fri, 06/17/2011 - 08:43 | 1377148 YHC-FTSE
YHC-FTSE's picture

Damned if they do, damned if they don't. That describes the world so perfectly right now.

The televised showing of 8000 tonnes of gold plated tungsten will have other effects too. None of them too good for the goldbugs and doomers, until the next crisis. 

Fri, 06/17/2011 - 08:52 | 1377174 GetZeeGold
GetZeeGold's picture

 

They just need to put a nanny-cam in the vault.

 

Problem solved.

 

Fri, 06/17/2011 - 08:57 | 1377191 TheTmfreak
TheTmfreak's picture

Well then they could rig it like on Speed. Better hope that damn lady doesn't move her purse again...

Fri, 06/17/2011 - 09:30 | 1377286 JFK.4PREZ
JFK.4PREZ's picture

Timmy likes to call it a satchel.  

Fri, 06/17/2011 - 09:30 | 1377276 AnAnonymous
AnAnonymous's picture

Damned if they do, damned if they don't. That describes the world so perfectly right now.

 

Yep, US citizenism at best. No different from WMDs in Iraq as the mad man Saddam Hussein was urged to prove he had not WMDs when he had none.

Just as US citizens wanted the mad man to have WMDs, they want the vaults to be empty. No result can change that.

 

US citizens nature is eternal.

Fri, 06/17/2011 - 12:41 | 1377922 knowless
knowless's picture

if the vaults were full, then a dollar revaluation to gold standard based on holdings could make goldbugs immensely wealthy sans confiscation. if's it's empty, then that's a whole nother issue.

Fri, 06/17/2011 - 16:35 | 1378711 Whalley World
Whalley World's picture

Goldbugs and Doomers, nice to place fiscally responsible investors who prefer a monetary metal with a 5,000 year history in the same boat as doomers.  Some of us just want to preserve our wealth, get it?

Fri, 06/17/2011 - 18:22 | 1378936 YHC-FTSE
YHC-FTSE's picture

Goldbugs and doomers - I include myself in that category, get it? Prat.

Fri, 06/17/2011 - 08:57 | 1377180 Pladizow
Pladizow's picture

Ron is going up against a corrupt US Gov that will do anything to protect the $ reserve status.

At best Ron will face a similar outcome to the Trump/Birth certificate fiasco.

The US Gov will fake what it needs to fake to prove their stance and silence opposition.

Trump was silly enough to ask the US Gov to provide a document that a division of the US Gov can replicate/fake at will.

If Ron continues to pursue this, he may eventually get what he's asking for, but the curtain will open, a big show will be put on, the assayed results will be faked and he will be marginalized and forced to withdraw like Trump.

Fri, 06/17/2011 - 09:41 | 1377305 scratch_and_sniff
scratch_and_sniff's picture

The only good thing is that if he takes a head shot at some point, he is close to the end of his life anyway, so atleast he has lived...a little bit of him probably wants to die if you ask me, people go like that eventually, its kinda sad.

Fri, 06/17/2011 - 10:03 | 1377380 Pegasus Muse
Pegasus Muse's picture

"Trump was silly enough to ask the US Gov to provide a document that a division of the US Gov can replicate/fake at will."

That being the case why did O'bummer post a fraudulent document on the Whitehouse.gov website?  And why did MSM inexplicably & mysteriously drop the entire matter?

Obama Birth Certificate Faked In Adobe Illustrator - Official Proof 1 ( Layers )

http://www.youtube.com/watch?v=7s9StxsFllY

Obama Birth Certificate Faked In Adobe Illustrator - Official Proof 2 ( Optimizing )

http://www.youtube.com/watch?v=JT0Tpf1IhxA&feature=iv&annotation_id=annotation_549885

Obama Birth Certificate Faked In Adobe Illustrator - Official Proof 3 ( Short Form )

http://www.youtube.com/watch?v=9eJx7jsPV44&feature=iv&annotation_id=annotation_852885

Obama Birth Certificate Faked In Adobe Illustrator - Official Proof 4 ( OCR / Optimizing )

http://www.youtube.com/watch?v=nW_PWzhgvDs&feature=iv&annotation_id=annotation_262120 

Fri, 06/17/2011 - 11:04 | 1377578 Libertarians fo...
Libertarians for Prosperity's picture

carnival barking idiot!  

You, nor the producer of those videos, haven't the slightest clue how Adobe Illustrator separates text from its background or how OCR works.

Even Faux News - who has been trumpeting the "birther" movement from its inception - has suddenly tried to smoke bomb their own pumping of the birth certificate story by discrediting this bullshit Adobe scandal. For the past two years, Faux News was nothing but the National Enquirer by proxy for the Tea Party, and now, suddenly, they treat the birther story like it's kryptonite. Not even the super-morons like Glenn Beck will touch it, and he's the biggest court jester the media has ever created.

http://www.foxnews.com/politics/2011/04/29/expert-says-obamas-birth-cert...

If this Adobe scandal had any legitimacy, don't you think Donald Trump would have latched onto it in an attempt to reattach his face after Obama ripped it off? If it were true, don't you think Fat Ass Limbaugh would find time to pump this Adobe story in between ripping lines of oxy?

Don't be a carnival barker. 

 

Fri, 06/17/2011 - 11:15 | 1377624 Sean7k
Sean7k's picture

Now, I don't know how OCR works. Consequently, I have no idea who is right. However, I can say, with logic on my side, that absolutely nothing you say in your rant is relevant or supports your argument. Every statement is the use of heresay to create the illusion of support.

Don't be a carnival barker.

Further, the fact that this hospital did not exist as named in 1961 and Kenya did not become a country until 1963 are much more important problems with the document. Go back to the WH will ya?

 

Fri, 06/17/2011 - 11:45 | 1377721 Libertarians fo...
Libertarians for Prosperity's picture

That's why I provided the link, you dipshit! Obviously you didn't read it. 

In it, Faux News interviews an expert who discredits the entire Adobe scandal. Are you trying to tell me that you'd believe my words over his?

For Faux News - the universal hub of anti-Obama propaganda - to suddenly back peddle away from the "birther" movement speaks volumes on the lunacy of the subject matter, and is far more convincing than a boring tutorial on OCR for those who know nothing about it and would never know if I'm telling the truth or not.

Besides, why would I ever want to explain how OCR works to a faux-philosopher who prefers to argue that mathematics and physics isn't factual?  

http://www.zerohedge.com/article/guest-post-peak-oil-long-short#comment-...

I can't even imagine where I'd begin the OCR tutorial with you. I'd probably have to start at the big bang.  And then you'd attempt to discredit OCR .000000000001 seconds later. 

 

 

 

 

 

 

Fri, 06/17/2011 - 11:55 | 1377755 Sean7k
Sean7k's picture

I found the link before your comment and watched it. Like I said, I don't know enough to believe either one, which is why I made no conclusion. 

Faux news is owned by Murdock, a well known Bilderberger insider. If you are truly fooled by the game played there, you need serious help.

As you never participated in that discussion, I find it interesting you would have it ready to quote. I find it just as interesting that you neither refute my points above nor the ones in the previous posts. You merely attempt to slander through association.

Did you forget which avatar you're trolling under?

Fri, 06/17/2011 - 12:24 | 1377798 Libertarians fo...
Libertarians for Prosperity's picture

I don't know enough to believe either one, which is why I made no conclusion....

For someone who doesn't think math or physics is factual, there is NO DOUBT IN MY MIND that you don't believe much of anything, regardless of merit, facts or who posts it. 

If you can tell me that you're reasonably sure gravity exists, I might consider pursuing this with you, otherwise this is just another knife fight with a hemophiliac.  No doubt, you're the first person on Earth who would carnival bark outside the math department at CalTech.  Next day's newspaper headline in Pasadena:  Philosopher goes Nuts!  Cognito Ergo Sum leads to doubt whether 2+2=4.

By the way, the fact that you said you "found the link...and watched it" proves you didn't click the link, at all.  It wasn't a video. It was an article - something one reads. You assumed that since I said Faux News, it must have been a video segment of some sort. 

Winning rules!  LOL

Fri, 06/17/2011 - 12:33 | 1377858 Sean7k
Sean7k's picture

I watched the link from the actual debunker. It is a video. I prefer my information "unfiltered". Like I said above, you continue to NOT answer my comments. Are you incapable?http://www.youtube.com/watch?v=QADAkitLu_c&feature=related

If you can read for comprehension, you will see I never questioned whether gravity exists. Why do you lie? Are you intellectually challenged? I mean, that would explain alot. The algebraic proof  that one plus one does NOT equal two is well known. The example illustrates that when used inappropriately, all "laws" can be abused for the purpose of getting a desired result. Which was the point of the discussion.

I apologize if you stumbled into a discussion beyond your ability to participate and were left angry and confused. However, I think your anger may be misplaced. If your mother hadn't slept with a neanderthal, perhaps you could get up to speed.

Fri, 06/17/2011 - 13:05 | 1378009 Libertarians fo...
Libertarians for Prosperity's picture

The algebraic proof  that one plus one does NOT equal two is well known....

Yeah, right.  p=>q is always true when p is false.  

You can believe whatever you want; you can choose to wrap your brain around mind-bending mathematical red herrings, but you'll never get an airplane off the ground using it.  Similarly, you'll always live in a deep fog if you filter your reality through false paradigms.  That applies to everything in life from airplanes in the sky to politicians on soapboxes to m/puppets in the media. Personally, I don't want to debate reality or facts with someone who get tripped up with 1+1=2.

Believe whatever you want.  It's your mind, and you're free to pollute it however you wish.

 

Fri, 06/17/2011 - 16:47 | 1378745 Sean7k
Sean7k's picture

Thanks for your permission. By the way, you still haven't answered a single question from any of my comments. What's the matter, trolling too difficult for you?

Sat, 06/18/2011 - 16:44 | 1379365 Pegasus Muse
Pegasus Muse's picture

Libs for Prevarication, with all his disjointed dissimulation and troll gibberish evokes a mental image of Gabby Johnson. 

You remember Gabby: http://www.youtube.com/watch?v=ke5Mr5eCF2U&NR=1 

Like Mayor Johnson said, "Now who can argue with that ...." 

Hell, who would want to?

Fri, 06/17/2011 - 11:55 | 1377756 ATM
ATM's picture

All the article says is that it's probably an unaltered pdf. I'm not exactly sure what that proves other than the theory that the pdf was altered is a little less likely.

Fri, 06/17/2011 - 08:10 | 1377055 Zedge Hero
Zedge Hero's picture

We are screwed when that vault door opens, hellllo? (helllo echo) anybody in here? Holy Sh#@$T , it's all gone. 

 

END THE FED

 

http://www.youtube.com/user/zedgehero

Fri, 06/17/2011 - 08:10 | 1377057 Max Hunter
Max Hunter's picture

Not going to happen.. It would be the end.. There is little gold left.. It's been stolen.. by.. guess who..

Fri, 06/17/2011 - 08:18 | 1377081 Michael Victory
Michael Victory's picture

 

Not going to happen..

I'll believe it when I I see it.

Mabe not even then.

Keep stackin, this year a snap back in precious metals could be very fast, and of course the presumed sell-off may not happen.

Holding Metals in a Market Selloff

 

Fri, 06/17/2011 - 08:20 | 1377092 blindfaith
blindfaith's picture

guess who?  to many name come to mind.

Yes, if the curtains are pulled back and there is a empty stage, the show IS over.  Maybe that is what is needed to get Americans to wake up.

Fri, 06/17/2011 - 08:37 | 1377125 Manthong
Manthong's picture

So, somebody take a SWAG.. If it was proven that the US gold reserves was a file cabinet full of lease agreements, what would happen to the price?

Fri, 06/17/2011 - 09:21 | 1377261 augie
augie's picture

probably the same thing that happened to silver a few weeks ago. Price will go parabolic and the CME will Raise margins to "curb volatility." I love Dr. Paul, i would gladly lay down my life in defense of what he believes, but i think we all know there is no turning this economy around. 

Fri, 06/17/2011 - 10:08 | 1377388 JFK.4PREZ
JFK.4PREZ's picture

They'll find a way to subdue the price within a week but the story would unfold something like this....

Some politician will say that it's a boon that we 'sold' it because we need more credit and liquidity in the markets - not some ancient relic which has no importance in this modern global economy.   Then he or she may add that this proves theyre getting serious about reducing the deficit... starting with this whopping 228 billion sale.  Unfortunately the MSM will cover this story for a total of 2 hours before Charlie Sheen's death takes precedance.  

Fri, 06/17/2011 - 12:47 | 1377940 knowless
knowless's picture

#winning the future

Fri, 06/17/2011 - 08:46 | 1377147 shortus cynicus
shortus cynicus's picture

Clear case: Osama Bin Laden... hmm no, this one is already killed twice.

Maybe Gaddafi? 

I bet, we find Gaddafi's passport in that vault.

Fri, 06/17/2011 - 08:08 | 1377059 Quintus
Quintus's picture

Well, the Government is always keen to tell us, when hacking back yet another one of our precious and hard won civil liberties, that 'If you have nothing to hide, you have nothing to fear'.

So then, I assume that an audit will be allowed with no objections at all, since clearly there is nothing to hide.

The response of the authorities to Paul's audit push will be as revealing as the audit itself, I should think.

Fri, 06/17/2011 - 08:07 | 1377061 Caveman93
Caveman93's picture

Gold? We don't need no stinkin gold!

Fri, 06/17/2011 - 08:07 | 1377062 Gringo Viejo
Gringo Viejo's picture

Never happen. If there exists the amount that Treasury states I'll shit in my hat. That gold is long gone.

Fri, 06/17/2011 - 08:58 | 1377194 Saxxon
Saxxon's picture

Agreed.  The treasury said it is there; therefore it is, even if it isn't. Does anyone think the treasury and the WH are going to lose that face before anyone?  The gold is there and there will be no assay or audit.

Fri, 06/17/2011 - 08:11 | 1377065 TwoShortPlanks
TwoShortPlanks's picture

Old Mother Hubbard more like it.

Won't take long and Paul will be suicided or experience one of those, "oh, the escape slide in the back of the 727 just went off by accident, luck it didn't mess with any flight controls" type moments.

 

Fri, 06/17/2011 - 08:11 | 1377067 swissinv
swissinv's picture

meanwhile I'd put the US and Germany rather at the end of the country list

Fri, 06/17/2011 - 08:12 | 1377068 css1971
css1971's picture

He has been pressing the point since the early 1980s

So... Not very effective then.

 

Fri, 06/17/2011 - 08:17 | 1377084 Sofa King
Sofa King's picture

There is a reason they have been avoiding the audit...it will reveal substantially more gold than the estimates.

That will be the death blow for all the "Cash for Gold" kiosks.  More unemployment to come.

Just speculating.

Fri, 06/17/2011 - 08:42 | 1377135 swissinv
swissinv's picture

dream on - it will just turn out like Bretton Woods

Fri, 06/17/2011 - 09:09 | 1377219 mayhem_korner
mayhem_korner's picture

Just speculating.

Appreciate you taking the wrong side of all these deals...was wondering where all the loonies were.

Fri, 06/17/2011 - 10:16 | 1377427 MachoMan
MachoMan's picture

Ok...  and your basis is....

Fri, 06/17/2011 - 10:56 | 1377562 downrodeo
downrodeo's picture

so the existence of the thesis automatically creates the antithesis...

Fri, 06/17/2011 - 08:13 | 1377070 cfosnock
cfosnock's picture

I'm sick and tired of the tungsten rumor. Either put up or shut up.

Fri, 06/17/2011 - 08:14 | 1377073 Quintus
Quintus's picture

Isn't that what Ron Paul is trying to do?

Fri, 06/17/2011 - 08:14 | 1377085 cfosnock
cfosnock's picture

No because if tungsten was delivered you do not need to audit Fort Knox. All you have to do is show someone the bars that were supposedly delivered

Fri, 06/17/2011 - 08:35 | 1377118 Quintus
Quintus's picture

If Tungsten was delivered AND DISCOVERED by the recipient, you can bet that they received full compensation and replacement by the seller with a non-disclosure gagging order too.  Everything will be denied.  Like it never happened.

Fri, 06/17/2011 - 08:45 | 1377154 cfosnock
cfosnock's picture

I agree but then were does the "rumor" come from...I would propose that they make an announcement and produce the bars if they had real gold. It would hurt the seller and your gold would be worth that much more.

Fri, 06/17/2011 - 13:39 | 1378111 zerozulu
zerozulu's picture

The thing is, lying does not hurt Amerika any more.

Fri, 06/17/2011 - 08:37 | 1377124 tmosley
tmosley's picture

lol, you think China would let that happen?

They are too busy extracting resources and favorable agreements with this lovely bit of data.

Fri, 06/17/2011 - 08:26 | 1377101 Trundle
Trundle's picture

Latest conspiracy theory (aka investigative journalism applied to relevant facts) has several stories that Dominique Strauss-Kahn was taken down in his honey pot scandal because he was about to drop the dime on the US treasury regarding the quality of gold that is being offered to the IMF as collateral for further funding of bailouts.  Putin and the Pakistanis (who have good reason to undermine) weight in on the scandal.  Also involved was that Egyptian Central Banker who also was involved in his own honey pot scandal a week or two after Strauss-Kahn went down.  The narrative suggests that Strauss-Kahn was relying on the Egyptian Central Banker for confirmed evidence regarding gold laminated tunsten bars and he was taken down before he could divulge.  

http://tinyurl.com/62k3xp6

http://tinyurl.com/3zlfgzj

Among others.

 

Fri, 06/17/2011 - 08:27 | 1377106 doggings
doggings's picture

yes Tyler covered this  Sorcha Faal nonsense here.

http://www.zerohedge.com/article/quick-note-internet-hoax-stories

Fri, 06/17/2011 - 09:56 | 1377353 Trundle
Trundle's picture

I agree, Sorcha Faal is all misinformation, but does it make sense that two bankers would be taken down so close to each other using the same honey pot construct?  Maybe, but many are sexual deviants and they can drop the dime on these guys anytime. So, something is up.  Maybe just not this.

If Treasury refuses to allow the Paul gold audit, this just feeds the frenzy as the

Europeans, Russians, Pakis pile on. 

Fri, 06/17/2011 - 08:33 | 1377112 ThisIsBob
ThisIsBob's picture

Don't forget:  Shiney side out.

Fri, 06/17/2011 - 08:14 | 1377072 DrunkenMonkey
DrunkenMonkey's picture

Expect Mr Paul to have an 'accident' sooner rather than later.

Fri, 06/17/2011 - 08:35 | 1377129 cossack55
cossack55's picture

Which one?

Fri, 06/17/2011 - 08:11 | 1377074 Sudden Debt
Sudden Debt's picture

What's the gold in the Euro area good for if it's not centralized and used to back up the euro?

 

Fri, 06/17/2011 - 08:11 | 1377075 serotonindumptruck
serotonindumptruck's picture

So-called independent auditors and assayers can be corrupted (in their findings) just as easily as any gold bars can be corrupted with tungsten cores.

Fri, 06/17/2011 - 08:12 | 1377076 Eric Cartman
Eric Cartman's picture

I'll audit Fort Knox. 

Fri, 06/17/2011 - 08:51 | 1377157 hamurobby
hamurobby's picture

And I will help, I have my pocket gram scale ready!

What I want to know is, why isnt GLD on the list in the top five?

Fri, 06/17/2011 - 08:17 | 1377080 Troy Ounce
Troy Ounce's picture

 

What Paul should do is announce publicly that the gold will be transported out of Fort Knox to another secure vault for an undisclosed time.

What you will see then is that all the leasing/swapping cockroaches will come out of the woodwork.

Fri, 06/17/2011 - 08:17 | 1377082 Sean7k
Sean7k's picture

I'll be more interested to see what the treasury official's comments are. There is a real possibility of perjury if an audit were completed. 

Paul has been tilting at FED windmills for his entire career. They will remain windmills as long as the FED can fend him off. 

As the FED owns the Federal government, this makes good theatre, but I have found that the sooner you realize we live in a police state, the sooner you can make the necessary adjustments to survive it.

You can't fix broken, stupid or America. 

Fri, 06/17/2011 - 08:36 | 1377130 cossack55
cossack55's picture

I think your last sentence contained redundancies.

Fri, 06/17/2011 - 08:44 | 1377152 Sean7k
Sean7k's picture

Nice catch. lol

Fri, 06/17/2011 - 09:04 | 1377197 shortus cynicus
shortus cynicus's picture

the sooner you can make the necessary adjustments to survive it

It is enough if your gens survive, you don't need live to long up to the biological end.

Natural way to day for a man, is by defending its genetical inheritence, by providing resources AND by eliminating the the enemy.

If state decide to be an enemy, so be it.

 

Not everyone can decide how to live, but anyone can decide how to die.

Fri, 06/17/2011 - 10:21 | 1377442 Vic Vinegar
Vic Vinegar's picture

Interesting perspective, and one not exclusive to you.  This mindset is on display daily across the pages of the web.

Are you really willing to die over this?  Are you sure you understand that this is both a plan and the natural progression of man?

Don’t fight human nature…man has gov’t and world gov’t is the next stage of the game.  Today we are just living through the finalization of such.

Fri, 06/17/2011 - 12:46 | 1377937 mick_richfield
mick_richfield's picture

The above comment is an example of what's called (by a great SF writer, Iain M. Banks) a "battle meme". 

Although this is about the simplest example of one you can find.  Boiled down, it says "Your defeat is inevitable.  You should retreat or surrender."

The point of a battle meme is to insert it into your opponent's thoughts, so that he mistakes it for one of his own. 

Sometimes they are single words, i.e. "Progressive". "Fascist."

If you can recognize when these simple battle mems are being used against you, they can provide valuable insights into your enemy's true capability.  For example, if he resorts to something as simple as the "you should surrender" meme, it probably indicates that he has no more effective attack available.

Fri, 06/17/2011 - 13:48 | 1378129 DoChenRollingBearing
DoChenRollingBearing's picture

+++

Nice comment.

Fri, 06/17/2011 - 21:31 | 1379333 RockyRacoon
RockyRacoon's picture

Yes, and CD should be our candidate to follow up on that.   He could write an article about this concept which most of us would enjoy.  There would be the usual "too long" comments, but that trollish behaviour is to be expected.

Sat, 06/18/2011 - 00:32 | 1379608 Vic Vinegar
Vic Vinegar's picture

I realize I'm way late to the party (i.e., too late to comment for anyone of note to see, but I have respect for the intellect and idealism of the three commenters above).

I am not saying anyone's defeat is inevitable.  I am only saying change happens.  We all - myself included - need to get over ourselves.

I don't want to die fighting this, and yet I don't want to sell out.  I am just saying things go on that are much bigger than ourselves or our ideals.

Adapt or die, bitchez.

Fri, 06/17/2011 - 16:55 | 1378755 Sean7k
Sean7k's picture

I believe that the natural progression of man is towards liberty rather than slavery. The elimination of government is the beginning of liberty.

Sat, 06/18/2011 - 00:42 | 1379626 Vic Vinegar
Vic Vinegar's picture

Sean7k, I agree with you.  I'm just saying the manifestation of that might not happen until about the year 5000.  We need to make plans in the interim.  I'm not making it until then and neither are you!

Fri, 06/17/2011 - 10:54 | 1377551 Uncle Remus
Uncle Remus's picture

Game over man. Game over.

http://youtu.be/dsx2vdn7gpY

Fri, 06/17/2011 - 08:17 | 1377089 gimli
gimli's picture

They won't find much there ...... just an old meat freezer on wheels and an empty pair of hand-cuffs.

 

http://www.youtube.com/watch?v=OlhKO9cWDpo

Fri, 06/17/2011 - 08:26 | 1377104 Trundle
Trundle's picture

Is that where they kept Osama?

Fri, 06/17/2011 - 08:18 | 1377090 Soul Train
Soul Train's picture

damn, why is it so difficult for this inspection to be done?

Ron Paul is in a congressional leadership position, head of his committee.

who exactly is the gatekeeper???

Fri, 06/17/2011 - 11:38 | 1377710 Founders Keeper
Founders Keeper's picture

[damn, why is it so difficult for this inspection to be done?]---Soul Train

Hi Train.

I'm afraid the answer is not specific nor sophisticated.

If the gold was there, audits would be regular, reliable, and objective. The results of which would be readily available in order to bolster public confidence during these uncertain times.

The fact that the govt is avoiding an audit should tell everyone the govt is hiding information they are scared to death to reveal.

Scare to death of what?

Assume there is no gold. I hope I'm wrong.

 

Fri, 06/17/2011 - 13:47 | 1378135 DoChenRollingBearing
DoChenRollingBearing's picture

I hope you are wrong as well.

Whether the gold is there or not, everryone should become their own central bank: But gold!

Fri, 06/17/2011 - 08:20 | 1377094 unwashedmass
unwashedmass's picture

the reasons why they can't do it should be interesting.

so how do you suppose they take out Ron before hearing? small plane? crazed supporter in NH?

i suppose the sex scandal ploy is kinda far fetched with him.

 

 

Fri, 06/17/2011 - 08:24 | 1377095 unwashedmass
unwashedmass's picture

the reasons why they can't do it should be interesting.

so how do you suppose they take out Ron before hearing? small plane? crazed supporter in NH?

i suppose the sex scandal ploy is kinda far fetched with him.

 

 

Fri, 06/17/2011 - 08:26 | 1377099 High Plains Drifter
High Plains Drifter's picture

He has been pressing the point since the early 1980s, when he was a member of the U.S. Gold Commission.<<<<

no shit?................

Fri, 06/17/2011 - 13:11 | 1378020 zerozulu
zerozulu's picture

If 6% of "US Gold" rot annually, there is nothing left anyway.

 

 

 

 

(6% maintanence fee)

Fri, 06/17/2011 - 08:26 | 1377100 overmedicatedun...
overmedicatedundersexed's picture

Mr Paul speaks to the point very well in speeches , yet when asking questions to the fed he constantly makes his remarks off point and confusing..why is that? I do not know.

how much gold is in ft knox is not the big question.. the stealing of trillions and off shoring of same is much more important.

I am beginning to feel Mr Paul has remained alive because he has agreed to never get to the inherent conflicts with the fed and it's owners

Fri, 06/17/2011 - 08:28 | 1377102 doggings
doggings's picture

have you seen Eric Carbonel's latest videos on the ESF?

gold reserves

 - from http://www.marketskeptics.com/2011/06/the-esf-and-its-history.html

big news

 

Fri, 06/17/2011 - 08:29 | 1377105 centerline
centerline's picture

Most likely we wouldn't be able to trust the results anyhow.  Who says the auditors would not be part of the game too?  Man - it really sucks to think like this.  But, hey... this is what happens when government gets too big and central banks are allowed to own a countries money supply.  We were warned long ago and now we are paying the price.

Fri, 06/17/2011 - 08:32 | 1377109 silvertrain
silvertrain's picture

Why in the hell would UT purchase 1b in physical Gold and have it STORED in New York is beyond me....

Fri, 06/17/2011 - 08:31 | 1377117 Mr. Majestic
Mr. Majestic's picture

TPTB will pull an Auric Goldfinger and nuke the site before they allow an audit.

Sun, 06/19/2011 - 14:15 | 1382752 Antipodeus
Antipodeus's picture

That would mean that somewhere it would be raining droplets of gold, wouldn't?  Whee!! ;=))

Fri, 06/17/2011 - 08:35 | 1377119 BlackholeDivestment
Fri, 06/17/2011 - 08:38 | 1377127 JPMorgan
JPMorgan's picture

If there is nothing to hide then having the gold at Fort Knox audited and randomly tested by a independent every 12 months shouldn't be a problem.

Simple as that.

It could prove to be the biggest gold heist in history if all they actually have is a I.O.U / out on loan.

Fri, 06/17/2011 - 09:30 | 1377287 AnAnonymous
AnAnonymous's picture

If there is nothing to hide then having the gold at Fort Knox audited and randomly tested by a independent every 12 months shouldn't be a problem.

 

The US has something to hide: the inventory is bigger than told.

Fri, 06/17/2011 - 11:53 | 1377747 Founders Keeper
Founders Keeper's picture

[It could prove to be the biggest gold heist in history if all they actually have is a I.O.U / out on loan.]---JPMorgan

I.O.U.s.  Reminds me of the Soc Security Trust Fund.

 

Fri, 06/17/2011 - 13:48 | 1378138 Strider52
Strider52's picture

I think I remember FOFOA saying we traded gold to the saudis to keep the price of oil down, although I could be wrong.

Fri, 06/17/2011 - 13:04 | 1377994 zerozulu
zerozulu's picture

roughly, 8,000 tonnes of gold is worth US$390 trillions. This covers about half the liabilities. what about the other half liabilities?

Fri, 06/17/2011 - 15:26 | 1378481 Urban Redneck
Urban Redneck's picture

Not if you are valuing gold anywhere the Comex price - it's $400 Billion (about one half of the 2009 shovel ready stimulus).

8,133.5 tons
x 2000 lbs/ton
x 16 oz/lb
x1535 $/oz
= $399,517,520,000

Fri, 06/17/2011 - 08:38 | 1377136 mayhem_korner
mayhem_korner's picture

The audit plan revealed...

http://dilbert.com/strips/comic/1998-10-29/

Fri, 06/17/2011 - 08:47 | 1377150 swissinv
swissinv's picture

if this audit is done, the USD is gone... and you don't create a new currency backed with tungsten after a confidence crise... the inspection will never happen, NFW!

Fri, 06/17/2011 - 09:00 | 1377199 mayhem_korner
mayhem_korner's picture

Is Gold in Mass Quantities (GMQ) the new WMD?

Fri, 06/17/2011 - 09:18 | 1377237 doggings
doggings's picture

haha, as in "worth invading for"?

i should think so, yes

Fri, 06/17/2011 - 08:46 | 1377155 Vincent Vega
Vincent Vega's picture

Assuming the gold is there (big assumption). I would still have two questions: 1) who 'owns' it? 2) is it unencumbered?

Fri, 06/17/2011 - 09:03 | 1377198 hamurobby
hamurobby's picture

Me too.

There is this little detail about the "Federal reserve private bank" being paid 6% (I think?) annually for their services. How exactly have they been getting "paid" for the last 98 years?

Fri, 06/17/2011 - 09:25 | 1377266 Dr. No
Dr. No's picture

Are you kidding me?  The FED and its large bank shareholders own most of america, and after QE2, Europe as well.  Pretty good gig if you can get it.

Fri, 06/17/2011 - 09:50 | 1377330 hamurobby
hamurobby's picture

I think that's more of a result of their operations, than what their payment agreement was to begin with.

Fri, 06/17/2011 - 08:46 | 1377156 Dr. No
Dr. No's picture

If there is gold in there, I recommend selling it to cash buyers.  If there is no gold in there, that is hugely bullish for gold price.  An immediate shoot to $3000/oz and beyond.

Fri, 06/17/2011 - 08:52 | 1377160 johnQpublic
johnQpublic's picture

No God!!

 

err...gold

Fri, 06/17/2011 - 09:15 | 1377226 doggings
doggings's picture

lol :)  -8100 

Fri, 06/17/2011 - 09:07 | 1377203 Sizzurp
Sizzurp's picture

In 1933, when FDR confiscated gold, the 94% gold coins were melted into bars and placed into gov. vaults.  These are virtually the only 94% bars in existence since most "good delivery" bars are .9999 pure gold.  Lately there have been rumors that some of these 94% bars have found there way onto the market.  If that is the case, there are strong questions as to where they have come from.

Fri, 06/17/2011 - 09:12 | 1377230 Sofa King
Sofa King's picture

I guess only the goverment can melt old coins into bars...go ahead, junk me, like I give a shit.

Fri, 06/17/2011 - 14:33 | 1378302 akak
akak's picture

Pre-1934 US gold coins were 90% gold, not 94%.

But your point still stands, as the numismatic premium of even the most common circulated pre-1934 US gold coins is noticeably higher than their melt value, so to answer the simpleton who posted immediately above me here, NOBODY but the 1930s US government would be or would have ever melted any US gold coins into bars.

Fri, 06/17/2011 - 09:11 | 1377215 overmedicatedun...
overmedicatedundersexed's picture

pladizow, thanks for keeping the avatar..seems some have lost the tata's

Fri, 06/17/2011 - 09:20 | 1377244 Winston Smith 2009
Winston Smith 2009's picture

My reaction to anything Ron Paul claims he'll actually accomplish which, coincidentally, may also be what they'll hear when they open the Fort Knox vaults at some point in the future:

http://tinyurl.com/4ukg4

Fri, 06/17/2011 - 09:23 | 1377254 Sofa King
Fri, 06/17/2011 - 09:24 | 1377258 proLiberty
proLiberty's picture

The audit should also cover whether and to what extent any of the gold is encumbered in any way.

 

Fri, 06/17/2011 - 09:21 | 1377263 stant
stant's picture

i tunnled in there right after the clinton era. and got the last 2 bars. spent it on women and booze the rest i pissed away

Fri, 06/17/2011 - 09:36 | 1377294 XitSam
XitSam's picture

Let's wait for the hearing and watch them tap dance. Then Tyler can just bulk repost all these comments. 

Go Ron, End the Fed!

Fri, 06/17/2011 - 09:41 | 1377317 optimator
optimator's picture

Dr. Paul put his money where his mouth is.  Look at his investment portfolio, surprised?

http://www.businessinsider.com/what-ron-paul-invests-in-2011-6

Fri, 06/17/2011 - 21:36 | 1379339 RockyRacoon
RockyRacoon's picture

I like it when people see this and say, "Hey, he's just talking his book."

Uh-huh.   Like revealing all this crap could go one way or the other.  It's not a lock that the "price" of gold would matter.   Dr. Paul probably owns most of the first gold he ever bought.

Fri, 06/17/2011 - 10:06 | 1377395 theprofromdover
theprofromdover's picture

Dr Paul's first challenge on Thursday is to keep the questions short & simple.

If he manages that, he might be onto something.

If he stays true to character, the muppet the Treasury put in front of him will be able to say anything he wants to, cos the question will have got lost in translation.

Fri, 06/17/2011 - 10:18 | 1377423 Boxed Merlot
Boxed Merlot's picture

Of course it always comes down to trust, truth and verification. What we're witnessing is nothing more than the generational baton transfer.

40 generations ago the question was posed of the central bankers of the day, does the depository give gold it's value or does the gold give the depository it's value?

The allegation was made that the depository could be destroyed but that within 3 days it would / could be rebuilt.

The allegation couldn't be verified until the destruction, and the rest is history.

Belief is funny that way.

Fri, 06/17/2011 - 12:51 | 1377954 zerozulu
zerozulu's picture

It used to be,"In Gold We Trust." but after adding Tungsten it was changed for honesty sake, " In God We Trust."

IMHO

Fri, 06/17/2011 - 10:21 | 1377440 striving4simple
striving4simple's picture

when in history has a government ever left that sort of wealth alone - never!

just think about human nature and the way governments operate

I'm sure it's all but gone

8133.5 tonnes of gold is only a 7.5 meter (24.6 ft) cube

 

Fri, 06/17/2011 - 10:28 | 1377458 medicalstudent
medicalstudent's picture

if the gold is not there... expect something to blow up somewhere.

 

literally, metaphorically, whatever.

Fri, 06/17/2011 - 10:34 | 1377477 MrBoompi
MrBoompi's picture

I'd like a look into the Comex vaults too, especially the new Morgan vault. But then again, they're government vaults as well right?

Fri, 06/17/2011 - 10:41 | 1377492 collinar
collinar's picture

If the banksters object to a gold audit of due to the cost, Ron Paul should counter with a list of ordinary citizen volunteers. I bet a lot of us would sign up for that. How can we be denied, it is our gold. Also, I have heard about a new tester that can detect tungsten in gold bars without having to melt them.  I think it uses a particle beam diffracton method. It can test a bar in seconds, so all the bars can be examined. Anyone else heard about this?

Fri, 06/17/2011 - 10:45 | 1377504 patb
patb's picture

My brother participated in the Audit of the Gold Reserves at the NY Federal Reserve Manhattan

several times in the 80's and he said he had zero confidence in how much gold was actually in there.

 

Now don't go running off and buy a bunch of gold futures on that or take physical delivery, let me explain.

 

You all think the Gold Reserve is like out of the Bond Movie Goldfinger.  Nice bright well lighted, well guarded, open stacks, with lots of room for forklifts and cranes.  Sorry, imagine a dirty nasty filthy, unlit, unventilated basement room in a 80 year old government building.    Yep.  Folks, the Federal Reserve is an old institution and it's an old building.  

Then stop thinking, high tech, laser scanner, death rays everywhere.  It's just a guard at a desk,

where you sign in and go down a little tiny elevator into the basement.  Think rattletrap, 1920's era open cage, shuddering and jolting.  

Then you go down and with the key they give you, you sign the door registry book and unlock a door that has the windowless, airless storage.  Yes, technically there is a 60 watt lightbulb in the ceiling, but, it casts a very dim glow because, you see the gold is stacked up to the ceiling.

the gold is on pallets, and the pallets are really old and the pallets have been stacked 12 feet up.

 

So imagine a somewhat nerdy group of 3 men in suits, sent into a dusty, cobweb, roach, spider, hellish basement.  Now here is how a metals audit is supposed to be done. Check the ledger, determine the total number of bars, then go into the vault and count the bars, verifying quantity.  Then from the ledger, randomly pull 1%, 1:300? of the bars , write down the serial numbers, and go into the vault and verify the bars are there by serial number.  Then take 10% of those so you are talking 1:1000 to 1:3000 bars, send them to an assay lab and have them assayed.  

 

Now here's what happened.  3 guys in suits take one look at the teetering, rickety, dangerous stacks with narrow little creepways between them. They all say "I am not ruining a $500 suit to get back there".  A little mini standoff occurs as the boss orders them in and they reply "It's dangerous, and if i get hurt, I will sue you personally and BTW, My uncle is in the mob, and if i get hurt, he will put a

hit on you".  

 

So they stand near the door, get some flashlights, and try to estimate if the pallet count looks close to the estimate for the bar count.  9 pallets wide, 7 pallets high, 25 pallets deep and then X bars per pallet.  

They then look at the edge of the pallets closest to them, read off a few dozen serial numbers and verify they are in the ledger, they then take 10 bars off the top pallet closest to the door and send them to assay.  The next day they get the lab results and they return the 10 bars.  

 

Now to the conspiratorial minded, this is a perfect opportunity for a scheme.  

 

Now to the ones interested in good auditing, it's a case study in a unauditable system.  

 

The audit can be done, but, some serious money needs to be spent.  The bars need to be pulled, re-racked, a decent racking system needs to be designed, more volume has to be allocated and

you need lots of manpower to go in and properly count and serialize the bars.  

 

That's a serious investment....

 

Fri, 06/17/2011 - 21:47 | 1379352 RockyRacoon
RockyRacoon's picture

There are plenty of things that I agonize over my "tax dollars" being spent on, but that would not be one of them.  Audit away.

Sat, 06/18/2011 - 07:47 | 1379921 hamurobby
hamurobby's picture

Seven pallets high? Are those the case hardened hickory pallets from the midwest?

Fri, 06/17/2011 - 11:02 | 1377546 collinar
collinar's picture

Opps, not clear. You can test for tungsten with a magnet or ultra-sound. The diffraction test does much more, since gold diffracts a particle beam in a unique pattern.

Fri, 06/17/2011 - 11:41 | 1377709 nikku
nikku's picture

Ultra Sound with 10 different opertors can give you 10 different opinions. While it can detect some adulterations, it is not able to tell you whether there's an air bubble orr something more nefarious. The point here is that the Treasury said it would only take 30 minutes per bar--THIS IS IMPOSSIBLE to be able to truly assay a bar in that time. They must be referring to x-ray florescence which is a SURFACE ONLY assay. The only way to accurately assay a bar "all the way through" is to do a destructive assay, with the following exception. There is only one technology I am aware of that can actually "see through" a bar and determine it's contents to the thousandth part. The technology's proprietary and is being considered by insurance compaies to be able to insure the purity of gold holdings in certified vaults. I wrote Dr. Paul to recommend it to him.

Fri, 06/17/2011 - 12:34 | 1377885 YHC-FTSE
YHC-FTSE's picture

I thought industrial gamma radiation equipment (The type that checks welds on 16inch steel pipes) will very quickly determine whether the "gold bar" has other metals. You have to do a surface test to assay the purity of the gold as well, but this should not take very long. 

Fri, 06/17/2011 - 11:11 | 1377620 overmedicatedun...
overmedicatedundersexed's picture

a president with an invalid BC? what better black mail do you need? perhaps a bisexual  drug filled encounter on film?

check both with this created suit in the white house.

the elites dream president..our man

Fri, 06/17/2011 - 11:15 | 1377621 The Pop In
The Pop In's picture

Just get Geraldo Rivera to do the audit and televise it "live", and everyone will believe it.

Fri, 06/17/2011 - 11:32 | 1377664 nikku
nikku's picture

From a letter I wrote to Ron Paul on the subject...

"I spoke to Steven Johnson at your D.C. office about how there are problems with the Treasury's statements and he suggested I send this information to your email address. According to the article, "The Treasury document says it would cost about $15 million to conduct an audit. The process would take about 30 minutes to verify the gold content of each bar, or 350,000 man hours; to do that would would take 400 people working for six months, according to the document."


First of all, unless they destructively assay the bars (by melting down or at least thoroughly drilling through the bars along with chemical/x-ray analysis) they CANNOT ascertain if the bar is fine gold in 30 minutes--this is impossible using every technology out there (except ours)! I would guess that they are referring to an x-ray florescence scan--but that only measures the surface and WOULD SURELY MISS ANY BAR THAT IS ADULTERATED WITH TUNGSTEN (or other similar-mass alloy) COATED WITH GOLD."            
Unless they use a technology that can "see through" a bar and determine it's content to the thousandth part, this Treasury estimate would only prove that the exterior of the bars is gold!

 

Fri, 06/17/2011 - 12:30 | 1377882 el Gallinazo
el Gallinazo's picture

Care to give us a clue what your technology is? Might help the credibility of your posting. Or do you intend to sell it to Paul as a black box?

Fri, 06/17/2011 - 11:46 | 1377717 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

First figure I heard for stock was 8,000 tons, now it is 5,000 tons, and if many a conspiracy or goldbug website is to be believed, there is virtually nothing left at Fort Knox,this means the dollar and all the treasuries and debts of the US have got virtually no gold behind them. 

 

If the audit never takes place,as most people expect,the above theories will then only become more credible.

Fri, 06/17/2011 - 11:45 | 1377728 fonestar
fonestar's picture

I wonder what Ron Paul's life insurance policy looks like?  Probably doesn't cover Cessna accidents or acts of TPTB.

Fri, 06/17/2011 - 12:31 | 1377869 Fix It Again Timmy
Fix It Again Timmy's picture

Well, it's very easy to misplace 8,000 tons of gold, I, myself, do it all the time...

Fri, 06/17/2011 - 12:31 | 1377888 zerozulu
zerozulu's picture

His next visit to New York, he will be introduced to a "Maid".

Fri, 06/17/2011 - 12:46 | 1377934 Exposer of Inte...
Exposer of Internet Shills's picture

What's to stop a significant number of bars to be put BACK IN just in time for the audit?

Fri, 06/17/2011 - 12:59 | 1377974 MachoMan
MachoMan's picture

audit of surveillance footage...  conferences (with experts/lie detectors) with security staff...  appearance of dust in some parts of the vaults and not others... 

a good auditor cannot give perfect assurance, but a good auditor can get pretty damn close.

Fri, 06/17/2011 - 12:51 | 1377955 PulauHantu29
PulauHantu29's picture

"But...but...but aduiting os for THEM, not us".....quoteth the Bankers

Fri, 06/17/2011 - 13:16 | 1378034 CHARLIE.DONT.SERF
CHARLIE.DONT.SERF's picture

Question:  Could the gold be in the vaults yet leased out and committed to some other entity?

Fri, 06/17/2011 - 14:48 | 1378335 suckerfishzilla
suckerfishzilla's picture

Just verify the volume that's reported to be there and then assay a small cross-section of the inventory.  You would only have to verify approximately 1% of the gold reserves to determine if further scrutinization was necessary.  If even one bar turned up fake in a mini-audit then that would justify further investigation into the matter.

Fri, 06/17/2011 - 15:08 | 1378406 bugs_
bugs_'s picture

Now to take the other side of this "what if".  What if an independent <trusted> third party audit shows substantially more gold there than was commonly thought?

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