While people under sixty may not remember it, the US dollar was backed by gold up until 1933. In fact, up until 1971, you could’ve converted your dollars directly to gold at a fixed value.
The majority of the US gold supply was stored in the US Bullion Depository in Fort Knox, Kentucky, to keep it secure. At one point in the 1940s, Fort Knox was said to hold just under 650 million ounces of gold. Since coming off the gold standard, this has been reduced significantly to just 147 million ounces today – or so they say.
Because the facility does not allow visitors, there’s no way of knowing how much gold is actually in Fort Knox or its actual value. This article will take a closer look at what we know about Fort Knox’s gold supply.
What is Fort Knox?
Fort Knox is a United States Army base in Kentucky best known for its relationship with the US Bullion Depository. The depository is located adjacent to the army installation, so the two are often referred to as a single entity.
The gold storage facility at Fort Knox was established in 1937 and has been in use ever since. It is operated by the United States Department of the Treasury and is protected by the United States Mint Police. The depository is well known for its physical security and has been referenced in countless movies, television shows, and books.
Fort Knox has also been used to safeguard other precious items and artifacts, such as the original US Constitution and the Declaration of Independence.
How Much Gold Is In Fort Knox?
The US Mint website states that Fort Knox holds around 147 million ounces of gold. This would put the value of the gold in Fort Knox at around $273 billion based on current market values.
However, many people question the authenticity of this number or whether there is even any gold in Fort Knox. This skepticism is primarily driven by the secretive nature surrounding the gold supply and stories that have come out over the past 20 years.
As outsiders are rarely allowed in the building, there has been some speculation that the US government has sold off most of its gold supply and replaced it with gold-plated tungsten bars.
This theory is based on a story that surfaced around 2009 after the Chinese government purchased a shipment of gold bars from the United States. According to the report, the Chinese tested randomly selected gold bars, only to find that they were, in fact, tungsten.
This theory was pushed further when it was uncovered that during the Clinton Administration, between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA. Apparently, more than 600,000 of these blanks were gold plated and shipped to Ft. Knox.
Since the government won’t allow an audit of the gold to be conducted, there is no way to know the truth. While some believe that the total amount of gold in Fort Knox may be greatly exaggerated, others believe that there may be no gold left at all.
What Happens to the Gold In Fort Knox?
The gold in Fort Knox is not just sitting in storage collecting dust. In fact, the gold is constantly being moved around and used for different purposes.
Some of the gold stored in Fort Knox is on loan to other countries. For example, some of the gold stored in Fort Knox has been loaned to England and Switzerland. The gold that is on loan is typically returned within a few years. However, there have been instances where the gold has not been returned.
In addition to being loaned out, some of the gold stored in Fort Knox is also used to make coins. The United States Mint uses a small amount of the gold stored in Fort Knox to make American Eagle Gold Coins.
These coins are then sold to the public for their spot price plus a small premium. The United States government keeps the money from the sale of these coins, and it does not have to repay any loans with this money.
What Happens if There isn’t Any Gold at Fort Knox?
If it were ever revealed that there is no gold at Fort Knox, it could have a significant impact on the United States economy.
Even though the US Dollar is no longer backed by gold, if people found out that the United States government was lying about its gold reserves, it could lead to a loss of faith in the government.
As a result, this could cause the dollar’s value to drop and inflation to increase. The stock market would also likely take a hit. In short, it would be a significant economic crisis. However, in this scenario, the price of gold would probably go up considerably.
What Should You Do if You Don’t Trust Fort Knox?
The secrecy of Fort Knox’s gold reserves can be troubling for people wanting more long-term security in their investments. To combat this fear, it’s essential to diversify your investments into tangible, concrete assets that won’t:
- Depreciate over time
- Have their value supremely controlled by the US government
- Won’t fade due to inflation or over-speculation
With that said, here are some important tips to follow:
Invest Your Money in Gold and Silver
You may be wondering how to get started in investing your money in gold and silver. The most common ways are purchasing physical metals, stocks in a mining company, or even an ETF specializing in these metals.
Purchasing precious metals like bullion or coins is an excellent way to hedge against inflation and protect your wealth. These assets are usually not subject to the same fluctuations as the stock market, and they can be quickly sold if you need to cash in your investment.
Another option for diversifying your investments is to put your money into a precious metal IRA. When you invest in a tax-advantaged IRA, you not only receive the same long-term benefits as you normally would, but you will also see short-term tax benefits.
While risks are associated with investing exclusively in these metals, they are an excellent option to diversify your portfolio and protect your wealth.
Invest in Cryptocurrency
Cryptocurrency is a digital or virtual currency using cryptography to secure transactions. Cryptocurrency is decentralized, meaning it is not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Since then, numerous other cryptocurrencies have been created, including Ethereum, Litecoin, and thousands more. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services; however, the value of crypto does not always track the stock market.
Don’t Get Caught Up in the Hype
When it comes to investing, it’s important to avoid letting emotions get in the way. FOMO (fear of missing out) is a real phenomenon that can lead investors to make poor decisions.
If you’re tempted to invest in something because everyone else is doing it, take a step back and assess the situation. Is this a good investment for you? What are the risks? Only invest in something if you’re comfortable with the potential loss.
Play the Long Game
Unless you are a day trader, it’s important to think long-term when it comes to investing. Markets fluctuate, prices change, and inflation will rise and fall. When investing in gold, silver, and other precious metals, you should be thinking about your investment in decades, not in years.
Open a Gold IRA Account with SpaceXgold
A Gold IRA is a tax-advantaged retirement account that allows you to invest in physical gold while securely saving for your future. With a Gold IRA, you can diversify your portfolio and hedge against inflation while realizing some serious tax advantages.
If you’re interested in purchasing physical gold or opening a gold IRA, we are here to help. You can contact a member of our team by clicking here, or you can click here to open an account if you’re ready to get started.
