Ron Paul Seeks to Audit Fort Knox Gold

Posted by Wealth Wire - Wednesday, June 15th, 2011

Is the Fort Knox "Gold" Actually Gold?

By Brianna Panzica

Fort Knox holds all 700,000 of the U.S.’s gold bars.

Or does it?

That’s what chair of the House’s subcommittee on Domestic Monetary Policy and 2012 Presidential candidate Ron Paul is wondering.

He has requested a subcommittee hearing on June 23rd in which he wants the U.S. Treasury Department and U.S. Mint to testify on just how real those bars are, and he is also requesting an audit of the bars, according to CNBC.

It sounds like a fair deal, just to be safe.

But the U.S. Treasury has announced that it would require $15 million and 400 men working for approximately 6 months in order to actually accomplish the audit Paul wants.

It is possible that all the speculation is coming from a report that surfaced in 2009 claiming that the U.S. government sent “gold” to China that turned out to be tungsten.

This is just one report, and an Internet conspiracy theory.

And yet in 2008 the Ethiopian national bank, according to BBC News, discovered that their millions of dollars worth of gold was actually gilded steel.

So it can be done.

Many people involved in shipping and obtaining that “gold” were arrested, though there is speculation that the supply was switched only after it was stored, since unless everyone was involved, someone would have noticed it was off.

Steel is way lighter than gold.

And according to Popular Science’s Theo Gray, there are much more plausible ways to make fake gold – and to make it seem very real.

Tungsten is the best way. Theo Gray says that the difference in density between gold and tungsten is imperceptible. If one were to cast a 1/16-inch layer of gold around tungsten, Gray claims, one of the only ways to discover it’s true nature might be to drill into it.

And even gold electroplating around tungsten might pass everything but chemical and x-ray tests.

Needless to say, fake gold actually made from tungsten is quite possible.

The Treasury Inspector General has tried to calm Ron Paul’s fears, claiming that he had seen the gold himself. But a U.S. Mint official told CNBC that Fort Knox is secure, believing no Congress member had seen the gold since 1974.

These conflicting reports have led to even more speculation.

We might not know unless Ron Paul gets his audit.

  +48

More like this...

Ron Paul Set to Shake Up the 2012 Election
Sources say Ron Paul will run for president in 2012. This could shake up the political landscape a bit.

China Building a New Fort Knox
If you think the recent, highly-publicized gold-buying mania is merely the result of a handful of panicking investors, urged along by a couple contrarian billionaire types... think again.

Gold Reserves Per Person, By Country (Where's the US?)
Fascinating chart shows a list of countries and the amount of money they hold on a per-citizen basis.

China Buys 47% of the World's Gold
Analyst Greg McCoach discusses how rising Chinese gold demand will put significant strain on global supplies -- and may be the catalyst that will push gold prices over the $1,500 level.


Silver Pandas