MATTOLE SELF-SUFFICIENCY PROJECT

What Happened to the Gold in Fort Knox?

As of 1949 (the last official tally), some 702 million Troy ounces of gold were held by the US government at Fort Knox. Between 1958 and 1968, fully half of the gold stored at Fort Knox was shipped to "foreign" buyers, mostly representing US citizens, at $35 per ounce. By 1971, the amount of gold stored at Fort Knox had dropped to 291 million Troy ounces.

The 1996 US Government Annual Report listed $11.050 billion in gold assets, valued at $42.22 per ounce and representing 261.7 million Troy ounces of gold, presumably stored at Fort Knox.

Among the assets of the Federal Reserve Bank, according to the FRS Annual Report for 1996, are $11.048 billion in US gold certificates, valued at $42.22 per ounce, representing 261.7 million Troy ounces of gold.

In other words, the US Government "owes" all of the gold held at Fort Knox to the Federal Reserve Bank in the form of gold certificates. Also note at the current market price of gold (around $400 per Troy ounce), this gold is worth more than $100 billion.

Thus, more than half of the gold originally stored at Fort Knox and taken from US citizens was sold to wealthy American citizens at the bargain rate of $35 per ounce. Around 1970, the dollar was allowed to float against gold and the price of gold in US dollars went up to $150 per ounce within a year. This represents a "windfall" profit of $47 billion, basically a 400% return on investment over a period of five to ten years. The remainder of the gold was sold to the Federal Reserve Bank at $42.22 per ounce, also representing a huge windfall.

Last Updated: 23 Mar 2005