Do we, or don't we, have the GOLD?

 WILL  AN AUDIT OF U.S. GOLD ACTUALLY HAPPEN?

NO REAL AUDIT SINCE WW2

Many have been trying to have an actual audit of U.S. gold holdings for decades, other than a 1970's photo op, there has not been any such accounting. The U.S. is supposed to have over 8100 metric tons of gold. This stockpile grew enormously during WW2 as payments for war supplies from allies came into the U.S. treasury. It is stored at Fort Knox, the Federal reserve bank in New York and several other locations. It is time to have a full accounting, that is for sure.

With price of gold now reaching $2950, gold is becoming a subject that is daily in the news, at least in the alternative media. Central banks, particularly in Asia have been buying gold at a increasing pace. BRICS counties are all increasing their stockpile of gold, many believe anticipating a gold backed currency.

The new Treasury secretary made a statement about monetizing U.S. assets. This statement has created speculation about if the U.S. going to sell gold, real estate or other assets of the United States government in an attempt to balance the budget and pay down debt. If gold is actually in possession and repriced at current levels it would amount to $800 billion, not enough to balance the budget or pay debt and it would be a one time event.

Then there is the speculation about the massive purchases of gold flowing from London to the Comex in New York and the taking of physical possession of gold. So far, no one is sure who is buying all this gold. some believe it is the U.S. government in an attempt to stabilize the U.S. dollar.

The dollar is under assault due to the massive deficits and the huge debt that this government has incurred. Some believe that only some sort of gold revaluation or dollar devaluation will have a positive effect on the dollar. 

The U.S. government devalued the dollar in 1933 by revaluing gold from $20 an oz. to $35. an ounce. This was done after demanding the citizens turn over their gold in exchange for a $20 paper bill. The wealthy and wise kept their gold and the poor and unsophisticated become instantly poorer. It was again devalued in 1971 to $42. an ounce. Since then, the printing presses have been running hot with no connection to any gold reserves, resulting in inflation and a daily drop in purchasing power of the dollar.

Some think that the government may again value the gold at the market price of $2950 an ounce. The reality is this will not solve the problem, but a revaluation at a much higher price like $40,000 an ounce could wipe out the national debt and allow those debt holders to be repaid in gold at that revaluation. 

While some may call that a fancy default, which it would be, anything is possible when a debt crisis is just around the corner.