The Gold Is Still There!
Shew. The gold is still there.
That’s a relief.
Treasury Secretary Steven Mnuchin paid a rare official visit to Fort Knox to check out the nation’s gold stash Monday.
Before visiting the Ft. Knox vault, the former Hollywood movie producer quipped about the possibility that the gold wasn’t even there any more.
I assume the gold is still there. It would really be quite a movie if we walked in and there was no gold.”
Well, it doesn’t appear there will be a movie in the works.
“Glad gold is safe!” Mnuchin tweeted after visiting the facility.
The Treasury secretary said the US has about $200 billion in gold stored at Ft. Knox. The last time anybody other than Ft. Knox staff actually laid eyes on the gold was in 1974 when several members of congress visited the facility. The last time anybody audited the gold was in 1953.
It doesn’t really come as a surprise that government officials don’t pay much attention to the US gold stash. It has no official role in the financial system. The US went completely off the gold standard in 1973. But the kill shot to the gold standard came years before, in 1933, when Congress enacted a joint resolution erasing the right of creditors to demand payment in gold. The move was the culmination of actions taken by Roosevelt that year.
So with the monetary system untethered from gold, why does the US government hold on to its hoard?
Because despite what government officials and mainstream economists tell you, they know there is power in gold.
Consider this: In the last eight years, China has acquired more than 4,000 tons of gold – more than 10% of the official gold in the world.
Central bankers and the financial elite have good reasons why they don’t want you to buy gold. They perpetuate myths about the yellow metal to keep the public disinterested in it. In an interview last year, Jim Rickards and Albert K Lu knocked down some of those myths. Rickards said when you boil it all down, gold is money. When you think in those terms, it becomes clear why governments still want to control gold – and dissuade you from having it.
So, is gold a commodity? Is it an investment? Is it money? Well, it depends a little bit. Like a chameleon, it changes color. I think of it as money. But I think that’s why there is such bitter opposition, and so many really canards and made-up stories, anti-gold. These come from the PhDs. Whoever controls money controls the world. You control wealth, you control politics; you control who wins and who loses. It’s a very powerful thing to control. Who controls money today? The answer is the central banks, and those are all PhDs, they come from MIT, Harvard, Chicago, Stanford, just a really small number of universities. They all know each other. It’s a club. Well, if you were in this PhD club that controls the central banks, you wouldn’t want people to even think about gold. You wouldn’t want them to talk about gold, because gold is the competition. Gold is the other money that can render their power meaningless. And so they perpetuate these myths about gold.”
In a famous interview a couple years ago, Ben Bernanke met with a group of students at George Washington University. One student perceptively asked him why the US keeps all of that gold if it’s really so worthless. Bernanke told the student it was just a matter of tradition.
Rickards said it goes a lot deeper than that.
Why does does the United States have 8,000 tons? Why does the IMF have 2,000 tons? Why does Germany have 3,000 tons? Why does China have 5,000 tons, perhaps more? Why has Russia purchased 1,000 tons in the past 6 years? If it’s such a worthless commodity, if it doesn’t have a monetary role, why are central banks around the world scrambling to acquire gold? Well obviously, it is money.”
Thank goodness, the real money is still there.
Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!