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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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. 

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.

 

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. 

GetZeeGold's picture

 

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

 

Problem solved.

 

TheTmfreak's picture

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

JFK.4PREZ's picture

Timmy likes to call it a satchel.  

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.

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.

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?

YHC-FTSE's picture

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

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.

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.

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 

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. 

 

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?

 

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. 

 

 

 

 

 

 

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?

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

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.

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.

 

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?

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?

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.

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

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..

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

 

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.

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?

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. 

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.  

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.

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.

Caveman93's picture

Gold? We don't need no stinkin gold!

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.

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.

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.

 

swissinv's picture

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

css1971's picture

He has been pressing the point since the early 1980s

So... Not very effective then.

 

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.

swissinv's picture

dream on - it will just turn out like Bretton Woods

mayhem_korner's picture

Just speculating.

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

MachoMan's picture

Ok...  and your basis is....

downrodeo's picture

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

cfosnock's picture

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

Quintus's picture

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

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

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.

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.

zerozulu's picture

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