the U.S. Treasury owns 248 million ounces (7,030.68 tons) of gold.
- It’s held, mostly in the form of gold bricks, at 3 locations:
- Fort Knox, West Point, and the U.S. Mint in Denver.
- 2/3 of this gold was essentially stolen from private U.S. citizens in 1933,
- when FDR outlawed the private ownership of gold.
- The right to own gold wasn’t reinstated until 1974.
- All of the confiscated gold was melted down into bricks.
- Then, in 1937, it was put on a special 9-car U.S. Army train & shipped to Fort Knox.
- Since then, just about the only people who have been allowed to see the gold are auditors from KPMG.
- No one else is allowed inside.
what would happen to this gold, if NIRP (negative interest rate policies) caused a global run on paper money?
- The only way to re-establish credibility & regain control of the financial system would be
- to re-establish the U.S. dollar’s convertibility into gold
- The Fed could offer to swap all of the Treasury bonds it holds (about $2.4 trillion)
- for all of the gold owned by the U.S. Treasury
- When you do the math, you come with a new dollar-to-gold ratio of $9,677.
- Roughly $10,000 an ounce