The United States Bullion Depository, more often referred to as Fort Knox, has long been the source of great speculation and endless conspiracy theories.
Here’s a quick history lesson for those of you who might be unfamiliar with Fort Knox’s origins. In the 1930’s, the United States, as well as a multitude of other nations worldwide, went through extreme economic difficulties- the Great Depression. During this time, the United States was restricted by the Federal Reserve Act which stated every dollar in circulation must be backed by a minimum of 40% gold in reserves.
The onset of the financial downturn caused widespread panic; citizens traded in their paper for precious metals, namely gold. This, along with the decision of many foreign banks to repatriate gold held by the US, caused gold reserves to sink. Because of mandates restricting the creation of new money without gold backing, the economy was dying a slow and torturous death.
To “revitalize” the economy, Franklin D. Roosevelt issued Executive Order 6102, which called for the confiscation of all gold coins, bullion, and certificates from the American people. Citizens were given $20.67 in paper for each ounce of gold they surrendered to the federal government. Those who disobeyed the order faced up to ten years in prison and a fine of $10,000.
With the accrual of such a large amount of gold bullion, the need for a new depository was born. In 1936, the US government began construction on Fort Knox in Kentucky, to be completed by year’s end. Radical security measures make this one of the safest, most impenetrable buildings in the world. Several layers of physical fences, alarms, surveillance cameras, minefields, barbed wire, bomb-proof roofs, emergency flooding systems, and heavily armed guards make this a location you do not want to break into (if you could survive the attempt).
Since the creation of the vault, there has been one quasi-official audit of the building. In 1953, President Eisenhower ordered an audit of the depository; however, no outside assayers were utilized and those who did perform the audit admitted to testing less than 5% of the bullion held. In the 63 years since that “audit,” no formal inspection has taken place.
This is how we arrive at the premise that there might not actually be gold in Fort Knox, any longer. I know we should all have full confidence in our government and take their word at face value, right? Right…
Let’s look at the facts. When someone is accused of a crime, the first thing police consider is motive. Does the government have reason to cover the true inventory levels of gold held in Fort Knox? Of course. Gold prices are controlled by public perception and speculation on the state of the economy. Knowing our reserves are low or depleted would have significant ramifications on the value of gold, and (more importantly to the government), the US dollar. So, if the Fed had used reserves without public knowledge, they certainly have a reason to avoid an audit.
Furthermore, if they do not have anything to hide, why all the secrecy? Why not indulge the skeptical John Q. Public and perform an audit (a legitimate audit) and dispel the rumors? Some say we are safer not knowing the truth. I would disagree. Call me a traditionalist, but I figure this country could use some honesty and transparency.
What do you think lies in Fort Knox? Gold? Area 51 remains? More political hot air? Let me know your thoughts.
Take the opportunity to do something those in the 30’s were not allowed to do. Pick up some gold to prepare for your future.
Happy S
tacking!
-J
$100 bill says the Rothchilds have most of the gold we once held.
Funny thing about gold is its value is subjective. its not like silver that has so many industrial uses. The world isnt going to die without all that gold. its worth what we say its worth. And rarity only goes so far. I’ll take a hot meal and a roof over my head over a handful of gold any day If it comes down to it. All that gold may not be worth hoarding at some point.
I don’t believe there’s much left in Fort Knox that’s actual gold. Wasn’t there supposed to have been some incident a couple years ago wherein a foreign country was repatriating some of their gold from us and tested it, only to discover that the bars were merely gold-plated lead or iron or some other heavy metal?
That wouldn’t surprise me! I’ll do some research to find out about the incident.
-J
Yes….china got some of our tunsten core “gold” bars, if memory serves
This topic gets my blood boiling. Show the people what we have! I’m afraid they will again attempt to take what isn’t theirs to take. This is embarrassing to me as a citizen and I am furious over our unwillingness to discover the truth. When someone will not tell you the whole of something, it is because they are hiding its parts. Great topic J!
I agree with your assertion that this government will once again attempt to confiscate citizens’ gold. Why else would they have zero concern over the insane debt they’re running up?
I imagine they would have a much tougher time this go around if attempted.
-J
Agreed…..”fool me once”
Try to fool me twice and we may have another revolution.
I couldn’t agree more. What are they afraid of? Open the vault!
-J
I’d like to think there’s all the gold in there that there is supposed to be. Because we are off the gold standard and gold isn’t any longer a requirement, all I really think is in there is dust and racks where gold once was kept.
I can’t say I disagree. I’d like to believe there is gold, but I would really like to see proof of it!
-J
I believe the gold that was once at Fort Knox has long vanished. Nice article; well written. There should be an audit of the gold every presidential election. The incoming and out going presidents should inventory the gold reserves together to ensure they are in fact there and the supply the government says is on hand is accounted for.
I’d love to have new presidents order audits; I would want independent assayers to be present, as I can’t say I have too much confidence in the politicians themselves.
-J