For many years only gold bugs and conspiracy theorists discussed whether Fort Knox had gold in it. Of course, with the help of GATA and other whistleblowers, coupled with a greater realization that the Fed isn’t the all-beneficent guardian that many once perceived it to be, a more critical eye is being cast on gold reserves.
Perhaps one of the most helpful discussions came when The History Channel attempted to check it out. The following video is anything but conclusive. But why? Shouldn’t any investigation be very conclusive? Shouldn’t there be full disclosure?
One of the voices of reason that may have influenced a more mainstream investigation is that of Senator Ron Paul. In the description of the following (very long) video, it is apparent that CNBC has also sought permission to film the gold. With the last audit having taken place almost 40 years ago, much remains unknowable today.
Such doubt has now clearly grown among Western nations. In fact, the wave of articles questioning the whereabouts of German gold over the past couple of weeks has been huge.
Adding to the confusion is the fact that much of the gold is regularly leased through the bullion banking system. This is a common, if unethical, practice, providing banks with an “excuse” to refuse to allow audits of gold reserves.
Swiss banks came under fire in recent years as it came to light that sovereign gold had been sold or transferred to other countries. Many have decried the U.K. central bank’s decision to sell roughly half of its gold reserves about a decade ago.
Concerns continue to grow among European countries. Just recently citizens in the Netherlands voiced concerns regarding sovereign gold.
Is it possible that central banks have consolidated wealth in gold in exchange for their fiat currencies? Again, speculation abounds. But, until full disclosure is given, we can hardly give them the benefit of the doubt.
Meanwhile, Eastern countries are openly increasing their gold holdings. This isn’t speculative. It’s open knowledge. As to the extent, there is room for debate. Bottom line? It appears that Western wealth may very well be moving east. From China to Iran to India to Russia, gold reserves continue to increase. Don’t expect them to give it up nearly as easily as we do.
J. Keith Johnson’s Austrian and libertarian perspectives on current socioeconomic and geopolitical affairs are fueled by his insatiable desire to both discover and share the truth. A Goldco Direct affiliate, you’ll find his commentary on The Gold Informant website, as well as various Internet financial and news sites.