Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Gold Prices
Gold Price
[Most Recent Quotes from www.kitco.com]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« The HUI: Keep an Eye! | Main | Gold Stocks Could Correct In One Week »
Wednesday
Oct172007

U.S. Could Sell Gold Reserves?

Fort Knox 17oct07



The US dollar has fallen 20% against the Canadian dollar since March, 15% against the Australian dollar since August and 7% against the euro in the past 7 weeks, according to an article carried in the so should the US sell gold in order to reduce their deficits?

It’s true that gold is approaching a 28-year high so why not cash in and reduce some of the debts. This article quotes the World Gold Council, who reckons that the government of the United States of America holds gold reserves in the order of 8,133.5 tonnes or 262 million ounces, which at today’s gold prices is worth around $200 billion. The article goes on to state the value of gold reserves held by various countries and also to argue the case for unlocking this store of value for other purposes. If you can find the time please read it by following the link above.

The article also mentions the Gold Anti-Trust Action Committee (GATA) who have on a number of occasions challenged the US government to do a public audit of their gold reserves to prove that they do actually still have these huge quantities of gold in Fort Knox. To our knowledge an audit has not been carried out for a number of years.

Now can you imagine politicians having the discipline not to put their hands into the cookie jar and use this store of value either through sales of small quantities or some form of leasing to alleviate the pressure that the US Dollar is currently subjected to? We can argue that such a large amount of gold would be traceable and we would be aware of such trades. We can also point to gold not keeping up with inflation, which would see it trading at approximately $2200/oz when the price is adjusted for inflationand wonder why. Without a public transparent audit of these gold reserves we don’t know if the Sword of Damocles hangs over our heads or not.

Have a good one.

If you are new to this web site and wish to receive our free newsletter then please click this LINK.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (2)

Dear Sir,

Regarding your commentary about selling the US gold reserves, I am under the impression that all the gold in Fort Knox is the property of the privately owned Federal Reserve Bank and not by the US treasury. Is this true and I have been misled ?

Michael Rubertone

May 22, 2008 | Unregistered CommenterMichael Rubertone

I dont think there is much gold in Fort Knox. Michale Rubertone is right. It is owned by private bankers and has already been shifted from the US soil

April 22, 2011 | Unregistered CommenterJunk

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>