No more gold in Fort Knox?

I've read an article today which hasn't gained as much publicity as I think it should have received:

Ron Paul, a texan congressman who even I, although German have heard of already, just called to mind what a lot of people already believe: That there is maybe no more gold in Fort Knox, the U.S. Gold Bullion Depository. Ron Paul simply wants an independent audition of Fort Knox to see if there is still gold.

The US have denied any independent auditing for decades and refuse to do so still today. It is an open secret that the gold price is being manipulated and artificially held down, but recently, this hasn't worked out that well, the gold price is celebrating all time highs during the last year. If it would turn out to be true, and there is no more gold in Fort Knox, and the US government has lied to the people (how shocking!), the gold price would probably explode. No idea what impact what this would have on the dollar. Maybe the economy and the dollar will simply break down, as Greenspan said, the gold price is basically a fever thermometer for the paper money. But anyway running a broken economy by lying to the people will also result in the same.

If I had some money left, I think this would be the ideal time to buy some gold now. ;-) Quite interesting times we live in today.

eight comments, already:

Gold is still not anywhere near its all-time high if you adjust for inflation. It hit $850 in 1980 and going by housing prices alone that would be the equivalent of well over $2000 today. I wonder if the federal government will do another gold confiscation ala FDR in the coming years (see
Judge Maygarden () - 01 09 10 - 17:49

Doesn’t Ron Paul have some vested interest in the price of gold up, though? In that case he may deliberately be trying to create a controversy in order to drive the price up.
cowsarenotevil - 01 09 10 - 18:35

As an American I’m glad to see that somebody is willing to try to step forward and fix the problem and expose the issues of our nation.

No nation is perfect and we all have made mistakes. A true patriot and citizen of a country is willing to not only talk about the good, but willing to expose the wrong in the system.

Thanks for posting this. Our media likes to pretend nothing is wrong.
Jonathan Snyder - 02 09 10 - 04:55

Hmm … that’s exactly the other way. Our (german) media tries to tell us nothing’s OK. At least that’s the feeling I get when watching news shows.
Brainsaw (link) - 02 09 10 - 07:23

Really, what kind of impact this can have? Dollar is not backed up by gold? Nothing new here, in the early 1970s gold standard was canceled. So, how is dollar backed up then? By the USDX index and as a wold trade currency (oil, gas, etc…;)
Vox - 04 09 10 - 14:48

The impact would be that everyone knows that the USA doesn’t have any money anymore, although they said the contrary.
uk - 04 09 10 - 19:13

So, you say gold is money, and dollar is not? Almost, gold doesn’t loose value, dollar does. But, dollar real value is “hidden” behind USDX, six other major currencies. When FED is printing money, other six central banks are following. And when there is no crises any more, mighty dollar value is reset back to approximately one to one ratio. Meaning, there is more money in the world than ever, and gold lowest value is higher than gold lowest value before crises. Gold will go down as gold investors will rush to other stocks because crises are over. Real trick is to know when to exit gold. It might be soon.
Vox - 05 09 10 - 12:24

The reveal that there is no gold in fort knox would not raise the price of gold: there isn’t a magic little man in the stock ticker who calculates the price of commodities based on the actual number of ounces of it existing in the world. Instead, prices are reached organically based on how hard the commodity is to get ahold of. There is no market difference between a bunch of gold that no one can buy in fort knox and no gold in fort knox at all.
Stephen Baynham () - 06 09 10 - 03:22

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