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Fort Knox: The Importance of Verifying US Gold Reserves Fort Knox: The Importance of Verifying US Gold Reserves

Fort Knox: The Importance of Verifying US Gold Reserves

US gold reserves have been getting more attention than they have in decades as renewed skepticism about the actual quantity of gold stored within its vaults has driven President Donald Trump and the head of Department of Government Efficiency, Elon Musk, to announce a visit to the Fort Knox Bullion Depository and even potentially live-streaming the event.

“We’re going to take a look and if there’s 27 tons of gold, we’ll be very happy,” Trump told the audience. “I don’t know how the [expletive] we’re going to measure it, but that’s okay. We want to see lots of nice, beautiful, shiny gold in Fort Knox.”

Given the pivotal role gold plays in both historical and modern financial systems, proving that Fort Knox holds the expected 147.3 million ounces (worth about $428 billion at today’s prices) is essential. The implications of a shortfall could be profound, triggering market instability, devaluing the US dollar, and causing gold prices to skyrocket.

Market confidence and stability

The perception that Fort Knox houses one of the largest gold reserves in the world helps underpin confidence in the US financial system. If a full audit were to reveal that the reserves are lower than reported, it could send shockwaves through global markets, prompting a selloff of US assets and creating a ripple effect across international markets.

Source: Senator Rand Paul’s X account.

The last full audit of the depository was in 1953. In 1974, journalists and Congress members took a brief tour, often mistaken for an inspection. Since then, only routine vault seal checks have occurred, with access limited to Treasury officials like Steve Mnuchin in 2017.

Impact on the US dollar

Although the US dollar is no longer backed by gold, the presence of a substantial gold reserve provides an implicit assurance of stability. If Fort Knox were found to contain less gold than expected, confidence in the dollar could erode, leading to depreciation. This decline would make US imports more expensive, contributing to inflation, while making exports more competitive. 

While some policymakers, such as Trump’s nominee for the Council of Economic Advisers, Stephen Miran, have suggested that selling US gold reserves could weaken the dollar intentionally to promote trade advantages, an uncontrolled drop in confidence would be a far riskier outcome.

Gold prices and Central Banks

Doubts about US reserves could fuel increased demand from investors and central banks. Emerging markets, which have been stockpiling gold in recent years, would likely accelerate their acquisitions, exacerbating price spikes. Higher gold prices could benefit existing gold holders, but might also make the metal less accessible for those seeking to hedge against economic uncertainty.

Fort Knox explainer: Why verifying the US gold reserves mattersCourtesy of US Mint.

Geopolitics

Another effect of finding less gold than expected would be the weakening of the US global standing and bargaining power. Countries such as China and Russia, which have been actively increasing their gold reserves, might capitalize on the situation to promote alternative financial systems less reliant on US influence.

Need for transparency

The lack of a comprehensive audit since 1953, combined with restricted access to the facility, has fuelled decades of conspiracy theories. Some believe the gold remains untouched in vaults, while others suspect secret sales or fake bars.

High-profile figures like Elon Musk and Senator Rand Paul have amplified calls for transparency, arguing that the American public deserves proof that their national assets remain intact.

Fort Knox explainer: Why verifying the US gold reserves mattersSource: Elon Musk’s X account.

A full, independent audit — potentially even a live-streamed verification — would dispel doubts and reinforce trust in US financial institutions.

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