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In my precedent essay, we looked briefly into the
Ft. Knox gold controversy. Ft. Knox gold used to back circulating
currency, but those days are long gone. Whatever gold remains within
this U.S. fortress is now just another Treasury “asset.”
Gold is always in vogue when currencies fall upon
hard times, as is now the case with the U.S. dollar. U.S. citizens need
to know whether our gold assets are still in responsible hands. If your
government is not trustworthy, it’s best to recognize this fact ASAP.
We received considerable positive feedback on the
last Ft. Knox gold article. I was pleasantly surprised, as this is a
pretty arcane topic. IDE gives us free reign as to editorial content,
and I am most grateful for these opportunities.
We will thus continue with the golden ghost of Ft.
Knox topic.
How have the U.S. Treasury and Fed performed over
the decades with their fiduciary responsibility of safeguarding this national
treasure? This is one murky and mysterious topic. It’s best
to simply present some historical facts as well as some conjecture, and allow
you to form your own opinion.
To some, this analysis might smack of
“conspiracy theory.” That doesn’t bother me,
especially when it comes to precious metals. That particular label
tends to close down a lot of inquiring minds and is utilized accordingly.
The ones who totally dismiss these issues are the naïve ones in my book.
Let’s start digging. What are some key
components of this Ft. Knox
gold controversy?
#1: Look at how silver has been handled.
#2: The Edward Durrell story of President Lyndon
Johnson losing our gold.
#3: Changing categories of U.S. gold hoard reporting
#4: Official gold is in play across the globe.
Silver is the world’s most common form of
historical money. I’ve owned silver at one time or another since
1973 and read most everything written about it for the past 15 years.
It is every bit as complex a subject as gold.
The record shows that the U.S. once held a
tremendous hoard of silver. It was used to back currency and as a
“strategic reserve.” An approximation of this hoard is some
5 billion ounces in 1950. That’s a lot of silver!
But this silver hoard has been almost totally
squandered over the past half century. It has been doled out on the
cheap to government-connected corporations and cronies. This is fact,
not conjecture. I suggest reading the prolific works of two silver
analysts – Theodore Butler and
Charles Savoie -
for further detailed information.
Both of these gentlemen eat, drink, and sleep silver. They have done
yeomanly work with their analysis. We have our differences of opinion,
but all clearly believe silver prices have been manipulated downward for
decades.
The key point is that U.S. citizens’ silver
hoard is kaput. Both gold and silver compete with unbacked
paper currency and that is not to be allowed. Silver has supposedly
been “demonetized” and now is just another industrial
commodity.
Don’t believe it.
The markets should be free to decide what is “money” and what is not. I
don’t trust central planners on any continent. Fiat experiments
always fail. Our current experiment is hanging by the skin of its
teeth. This is a global problem. The world is set to soon
rediscover silver.
What does silver have to do with Ft. Knox
gold? I see a definite parallel. Incredible amounts of silver
have been squandered on the cheap. That is not up for debate.
This is in spite of silver being a “strategic” metal.
Can you trust these same blokes with our national
gold treasure? Especially a treasure that hasn’t received an independent official audit
since the 1950s?
Good luck with that.
Unfortunately, you must at least suspect that gold
has been treated similarly to silver over the decades. A highway
robbery has transpired. Methinks it’s a federal highway.
We will
continue with the Ft. Knox gold controversy in the coming weeks, point by
point. This is much more than sheer entertainment. Your financial
future is on the line.
Invest
resourcefully,
Russel McDougal
Investor’s Daily Edge
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