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Gold is a commodity and its value is subject to the law of supply and demand.

You can say gold is basically real money in all the senses due to its value. It is not like the paper money of the currency of US which only print unlimited money. Whereas countries like Singapore does not print currency.


Gold will soon become more valuable as the press will release more and more money and in this way people will try to buy more gold for them and to save it.

The more supply, the value will automatically fall down badly. The value goes up when the supply of anything is less.

It will require more money to purchase an ounce of gold when you have limited amount of gold and the supply of dollar is unlimited. It cannot be avoided that dollar always fall but at the same time gold prices get more and more high.

The dollars of America in the circulation are just for the IOUs and it will be fine if the reserves of gold were in the Fort Knox to back up the IOUs, but what will happen then if there will be no gold present in Fort Knox?

This query dates back of the Great Depression days.

The American people given the vote for change in November 1932 and as a president they elected New York governor who was Franklin Roosevelt. Executive order 6102 was issued by him who immediately finished the ownership of the gold coins, even bullions and certificates by the citizens themselves.

He explained that why he did and took this step. He wanted that people to take the loan from the government during the great Depression. In his period only the American gave the gold to the US treasury. 

In Fort Knox there was a lot of gold present, it was told by the treasury department that Fort Knox Depository held 649.6 million ounces of gold as dated Dec. 31, 1941. This was around 20,000 tons of gold.

The cold war which was supposed to be world war II and the Korean war, the Vietnam War and also a long string of few US military who were engaged and committed till now.

A lot of money is given to the big wars and the people of that nation which means government. It is stated by the treasury department that there are 147.3 million ounces of gold in Fort Knox. This is supposed to be less than 23% of the original quantity taken by the people in the early 1930 and returned back in 1941.

You don’t need to worry for this. In Fort Knox, The official Treasury Department statement on the matter of gold is that "The only gold removed (from Fort Knox) has been very small quantities used to test the purity of gold during regularly scheduled audits. Except for these samples, no gold has been transferred to or from the Depository for many years."

The Treasury Department adds in it, "The Depository is a classified facility. No visitors are permitted, and no exceptions are made."

We never like that any visitors to keep an eye in the Fort Knox Depository, shall we? 
 
Why we take the words of anonymous people who are the federal managers? Actually nobody exactly knows what is inside Fort Knox. You can take an example; you have seen the film of James Bond. So it is just a movie but that is not real.

If you get the knowledge from any independent source so it is not something bad. We can understand the need to keep the Fort Knox secure so that it can remain safe. From the US Treasury Department there is no need to have a declaration statement. It is not out of line to know about the national gold depository.

President Ronald Reagan said, "Trust, but verify."

The gold supply is the important part of the US monetary base. It assures the quality and amount of the gold which is very important. It keeps the nation’s powerful weapon in full control.

What can be the result of the gold audit? There can be two possibilities.

A new series of issues for the gold market and the federal monetary authorities will be missing which will be independent audit needed as same as the gold is required.


 


Comments

zakaria
12/12/2012 5:03am

Yes this is an international rule, in our case we have the gold, so if the supply is big the value of gold will decrease ,the more the supply is less, the more gold’s value will increase and so one

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Scott
12/13/2012 1:45pm

The amount of gold you referred to in Fort Knox is insane to think about! You've really done your research and this information is going to help me greatly with the paper I'm writing.

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Niloy
12/15/2012 5:45am

I also believe that the big wars were left the values of dollars at the lowest place possible and for this now the US government is regretting. There is no good side of wars but keeping the financial condition of a state in a worse condition. If they keep the Fort Knox in a good condition till the end, I think, they can hold their economy at the best place always. But, if my guess is wrong then I better hold my thought no to waste further.

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12/18/2012 7:22am

This is such good information! You done your homework in the subject I must say.

My opinion is that I do not think half of Americans understand how the Treasury Department ( or what ever department ) sets regulations and determines a precious metals worth at the moment of sale. Of course the purity is a main factor but who's to say the person giving you the quote is a honest dealer. Greed is within everyone so if I decided to invest I would have to find someone whom I truly trust!

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Kristine Joy Escarilla
01/05/2013 7:00pm

The gold at Fort Knox is what keeps the economy of the US in spite of its ups and downs. Now, to think that there was no gold at Fort Knox would not be in congruity with the event in history such as when the Americans gave their gold to the US Treasury during the time of Franklin Roosevelt. Therefore, in spite of the huge amounts of gold that have been taken out to fund the wars and the US military operations, there must be some amount of gold more or less left in the Fort Knox Depository.

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ghifary kamal
01/17/2013 10:11am

Although gold is a precious mental which is deposited in the rock it is not excluded from the law of demand and supply. So it is well predictable that the price of gold will never go down. But the matter of fact as to this natural resource is limited in quantity. Some day we will finish this resource and mines will be of no use. Imagine how much the price will be of gold that day.

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