DOGE Audit of Fort Knox

Does it or doesn’t it exist? It’s been the question many have asked since the end of the gold standard, when France called the U.S.’ gold bluff, demanding delivery of their gold leading to the end of the gold-backed U.S. dollar and the beginning of the petrodollar. So, as the end of the petrodollar becomes nigh in the coming decades, with the green energy world order eroding its base as China strengthens relations with Saudi Arabia using the PetroYuan – is it time DOGE audits one of the longest-running conspiracies in the U.S.?

Following our article from the other day - today we look back at what was the conspiracy, and where did it originate? We’ve also consulted with the industry to try to give the Ainslie audience a reference for what’s been happening in the gold market. Were the tariffs we discussed in January merely a cover for the largest gold transfer between LBMA and Comex vaults to replenish the Fort Knox reserves?

The Conspiracy - Did the Rockefellers Steal the Gold?

The conspiracy theory behind the missing gold in Fort Knox broke in 1974 in an article from the New York Periodical. The article claimed the Rockefeller family manipulated the Federal Reserve to sell off Fort Knox’s gold at bargain prices to European speculators. The article source was Louise Auchincloss Boyer, former executive assistant to Nelson Rockefeller who mysteriously fell to her death from the 10th floor of a building three days after the story broke. Nelson Rockefeller, a prominent Republican, was Governor of New York from 1959-1973 and then Vice President from 1974-1978 under Nixon.

In 1981 an article surfaced in the Globe alleging that between November 1973 and April 1974, seven thousand tonnes of gold was removed from Fort Knox and shipped to the Federal Reserve in New York. It was then flown to Switzerland and the Netherlands where it was claimed to have been sold for $42.22/oz. The article claimed that Victor Harkin, who oversaw the gold at Fort Knox from 1961 to 1978, stated that one of these gold shipments in 1971 required 33 trucks, each carrying 15 tonnes, to "haul it out of here."

Not an Audit – The Only Audit in 50 Years

In the last 50 years, the gold in Fort Knox has been audited once, though to pass it as an audit is laughable. In September 1974 128 participants were shown into Fort Knox. This ‘audit’ passed around a few gold bars to lucky participants – with only 1 of the 15 vaults opened for a 2-hour viewing period, bars serial numbers were not recorded, and assays were not taken.

What are the Rumours?

Industry participants have confidentially verified that gold transfers from LBMA vaults to Comex vaults have been occurring at rates of up to 50 tonnes per day since mid-December, with flights from London to New York carrying between 1-2 tonnes of gold per trip. That would put the potential movement of gold around 3,000 tonnes in this period. Still short of the 4,580 tonnes Fort Knox needs to meet the audit. From Comex vaults – no one is sure if it is being moved back out or if it's remaining, but if it is being used to refill Fort Knox – bars will need to be changed. Potential audit issues will arise including refinery stamps and serial numbers which for the amount of gold would need a large and secure foundry before a final destination of Fort Knox – but 1-2 tonnes per day is not unachievable for most precious metal foundries.

Gold Moving – Operation Fish

During WWII England sent all its gold to Canada for safekeeping. It was mostly shipped to Halifax and then sent by train to Ottawa where it was stored in the Bank of Canada's vaults.

Operation Fish was the largest movement of physical wealth in human history - US$160 billion worth in 2017 dollars – that is until now. If the rumours are true, there’s been a movement of 3,000 tonnes of gold from the LBMA vaults to Comex worth in the vicinity of US$300 billion.

DOGE for the Audit

The pressure is now on for DOGE to audit Fort Knox’s gold holdings and quell the 50-year conspiracy theory – it might be time. Rand Paul and Elon Musk are joining a raft of political figures querying the legitimacy of Fort Knox’s claim to still hold 4,580 tonnes of gold. Musk has suggested ‘Live streaming the video in real-time’.

Even if the gold is there – with the level of movement of gold into America and the possibilities to showcase gold-plated tungsten bars – a live stream is unlikely to put an end to the conspiracy theories surrounding Fort Knox’s gold – but at least a really cool video to watch for any gold bugs will be out there.