Why Auditing America’s Gold Is Critical for National Security

Clear Facts

• An exchange on X has reignited discussions about the status of America’s gold reserves, with calls for a comprehensive audit.
• The Gold Reserve Transparency Act, sponsored by former Congressman Alex Mooney, aims to conduct the first true audit of U.S. gold reserves in over 65 years.
• There is broad support for auditing America’s gold, with arguments emphasizing transparency and the need to verify any encumbrances on the reserves.

The recent buzz on X has brought renewed attention to the mystery surrounding America’s gold reserves, reportedly amounting to 8,133 tons stored in Fort Knox and other locations. This issue resurfaced when it was suggested that Elon Musk, known for his efficiency-driven approach, should verify the presence of 4,580 tons of U.S. gold, noting that the last inspection occurred in 1974.

Elon Musk responded with a question that many Americans might assume: “Surely it’s reviewed at least every year?” However, Senator Paul of Kentucky quickly dismissed this assumption, stating, “Nope. Let’s do it.”

The call for transparency has been echoed by a leading American bullion dealer, which supports the Gold Reserve Transparency Act introduced by former Congressman Alex Mooney. The act aims to “provide for the first true audit of gold owned by the United States in more than 65 years, and subsequent audits every 5 years.”

The legislation is designed to ensure “regular, credible audits of America’s gold,” including a detailed accounting of any financial maneuvers involving the reserves, such as pledges, leases, or swaps. This level of scrutiny is something that private depositories routinely undergo, yet America’s gold holdings have not been subjected to a comprehensive audit since the 1950s.

In 1974, a highly-publicized inspection allowed a select group of Congress members and media to view a single gold compartment at Fort Knox, but this did not qualify as an audit. The subsequent process by the General Accounting Office and the Department of the Treasury, which concluded in 1986, was more credible but still not independent. Alarmingly, a researcher has found that half of the reports from this period are missing, and some gold compartment seals appear to have been tampered with.

For years, advocacy groups have pushed for an audit, supporting legislative efforts like the Gold Reserve Transparency Act. Other proposed bills have also called for comprehensive audits to be conducted every five years.

These audits would include a full assay, inventory, and analysis of security measures, as well as an accounting of any encumbrances, transactions, and interests held by third parties. The findings would be publicly available, with only necessary redactions to protect security details.

Support for such transparency extends to notable figures like former Congressman Dr. Ron Paul and economist Judy Shelton. Chris Powell of the Gold Anti-Trust Action Committee emphasized that the critical issue is not just the presence of gold in the depository but whether it is encumbered by agreements made by the Federal Reserve or the Treasury Department.

While state-level initiatives have seen success in the sound money movement, federal progress remains lacking. A comprehensive audit of America’s gold reserves is essential to bolster confidence in the nation’s currency and ensure transparency regarding its classical monetary asset.

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