Dear Reader,
The president intends to accompany Mr. Musk to the United States Army installation at Fort Knox, Kentucky.
Fort Knox is where doddering old Uncle Samuel allegedly stashes half his gold — some 4,582 metric tons, by rights.
And the two gentlemen are out to verify its presence thereat.
Yet why now?
I explained recently that a potential debt ceiling crisis hovers over Washington.
And that gold — valued officially at $42.22 the ounce — could potentially be revalued at present prices.
Such a revaluation could deliver the United States government a $700 billion windfall.
That instant windfall could see the federal government through lean times… in the absence of a debt roof elevation.
A vault inspection — a positive vault inspection — would inspire confidence in the scheme.
What inspires greater confidence than 4,582 metric tons of gold?
Is the Gold Actually There?
Of course… not all are convinced the gold is present within the subterranean vaults of Fort Knox.
They believe the United States government has sold it off… in secret.
Are they correct?
The authorities have not taken actual inventory of Fort Knox gold since 1986.
That year the vaults were sealed shut.
In 2017 President Trump’s initial Treasury Secretary — Mnuchin — ripped open the seals.
He assured us the Fort Knox gold was in fact present.
Yet he offered no evidence in support thereof.
We were simply instructed to accept the fellow at his word.
Some even speculated he told us an honest lie. He observed the metallic bars, that is — yet
These metallic bars sported false whiskers.
They argued that the “gold” bars were largely tungsten bars jacketed in golden veneer.
My spies have been unable to authenticate the claim.
In 2011, former Rep. Ron Paul (R-Texas) introduced legislation to audit the United States Treasury’s gold holdings.
It was a juiceless pursuit. Treasury officials erected around him an insurmountable and unbreachable wall.
And Dr. Paul’s bill died aborning.
Jim Rickards on the Fort Knox Gold
Again: Is the Fort Knox gold well and truly vaulted within Fort Knox?
Freedom Financial News contributor Jim Rickards ranks among the world’s premier gold aficionados.
He has even authored a book bearing the title, “The New Case for Gold.”
He has also advised the Central Intelligence Agency… and presently conducts seminars at the United States Army War College.
Does Mr. Rickards believe the gold is domiciled at Fort Knox?
The answer is yes:
- Is the gold actually in Fort Knox?
- Let me say it right now: Yes, the gold is there. I actually have some evidence that the gold is there from military sources.
Why — then — the skunkworks secrecy? Why would the United States government resist so forcefully golden audit?
Mr. Rickards believes he holds the answer. And it is far less sinister than many care to imagine.
An audit would stamp gold a primacy the monetary authorities would deny it:
- If you are the Fed or the Treasury and you want people to think that gold is unimportant — which they do — why would you audit it?
- You audit things that are important. You do not audit things that are unimportant. If the Fed doesn’t want you to think that gold is important, it follows that they would not audit it. Auditing it pays gold too much respect.
- I am in favor of an audit, just to be clear. But the fact that the government does not audit the gold does not tell you that the gold is not there. They just do not want you to pay any attention to it.
How Would an Audit Impact Gold Prices?
I believe there is justice here.
Global monetary authorities cling closely to the “barbarous relic” theory of gold.
They would banish gold from all monetary consideration… and unimpeachable evidence indicates they conspire to suppress the gold price.
Mr. Rickards believes, incidentally, that the monetary authorities are losing their iron grip upon gold.
He further believes that gold will one day fetch over $10,000 the ounce.
Would a Fort Knox audit send gold careening to the impossible heights?
SE Asia Consulting Singapore consults clients about precious metals. From which:
If the audit verifies Fort Knox’s gold, prices would likely surge:
- Trust Boost: Confirming 147.3 million ounces would solidify gold’s safe-haven status, drawing investors and central banks alike.
- Revaluation Lift: A $1,000 floor, paired with a verified reserve, could signal a quasi-gold standard, pushing prices toward Rickards’ $5,000-$10,000 range… A confirmed stash could propel gold past $5,000, fueled by institutional buying.
Just so. Yet what if the audit reveals the Fort Knox gold is a pure or partial fiction?
The answer is a “price frenzy”:
If the audit finds empty vaults or less gold than claimed, conspiracy theories would ignite a price frenzy:
- Supply Panic: Losing even part of 147.3 million ounces would shrink perceived supply, sending gold to $5,000-$7,500 overnight. Rickards’ $10,000+ ceiling could loom if trust in fiat collapses.
- Dollar Plunge: A credibility hit could tank the dollar, sparking inflation and a gold hoard rush. Prices might hit $15,000 in extreme scenarios.
- Global Fallout: Other nations might audit their reserves, amplifying scarcity fears and driving prices higher.
Got Gold?
In either scenario — the positive audit and the negative audit — gold prospers splendidly.
Concludes SEAC Singapore:
- Gold mining stocks and physical gold demand would rise, with the dollar potentially weakening as gold’s value grows.
Thus the odds stack very heavily in gold’s direction.
As the abovesaid Mr. Rickards is fond to ask:
Got gold?
Regards,
Brian Maher
for Freedom Financial News
