Posted originally on Apr 10, 2025 by Martin Armstrong 

There has been ongoing speculation about America’s holdings of foreign gold reserves. Elon Musk’s request to audit Fort Knox pushed the issue into the headlines once more. Now, the new incoming German government is discussing pulling their gold reserves from the New York Fed due to a lack of transparency and the public is asking—where is the gold?

I personally toured the New York Fed many years ago, and while there is gold there, I cannot verify the quantity or quality; no one has ever accomplished such a feat. The last full audit of US gold reserves occurred in 1953 under President Eisenhower. Auditors from the US Treasury and Mint verified domestic and limited foreign-held gold at the New York Fed and Fort Knox. Third-party auditors were not permitted, but there were US Congressional observers. Treasury Secretary George M. Humphrey and Mint Director William H. Brett were in charge of overseeing this audit.

Now, the government declared the audit to be a “full” inspection. However, only 3 of the 22 compartments at Fort Knox were examined, accounting for only 13.6% of gold holdings. Around 88,000 bars (34.4M oz) were meticulously counted, and auditors weighed around 9,000 bars (130 tons). Only 26 gold bars, selected at random, were drilled to confirm purity. Auditors confirmed that US gold certificates matched physical holdings at the New York Fed, but due to limited sampling and a lack of transparency, suspicions rose. “We have no reason to believe other melts would differ [from assay results],” the joint commission stated.

The gold examined was mainly domestic. Germany’s holdings, for example, were not part of the audit. Public confidence in the US government was on the decline at this period amid Cold War secrecy. Around the same time of the audit, the CIA admitted it to Operation Ajax—a covert operation to overthrow Iranian Prime Minister Mohammad Mossadegh and install Shah Mohammad Reza Pahlavi. This was the first time that the US government openly admitted to orchestrating a coup and installing a leader in a foreign nation. How could the public and/or foreign nations trust the US under these conditions?

(Sources: Treasury 1953 Report, Sound Money Defense League, FRASER).

The GAO/Treasury conducted the next audit in 1974, reviewing 21% of gold holdings at Fort Knox. This occurred in the post-Bretton Woods period after Nixon abandoned the gold standard. Again, third-party auditors were not permitted to attend, and this time, auditors did not weigh bars. Some called the September 1974 examination a “show audit” and a publicity stunt as only 1 of the 13 vaults was examined. The “real” audit occurred the following month by a joint GAO-Treasury committee, but as mentioned, only 91,404 bars of 367,500 were examined. Random samples were tested for purity, but there was no assaying or weighing.

Continuing audits were ongoing, and the US government pledged to inspect 10% of its gold holdings annually from 1975 to 1983. As of 1985, the government stated it had audited 89% of its gold holdings, but only through seal verifications and limited sampling. Again, only the US government had access to these vaults.

The matter was ultimately laid to rest until 2012, when US politicians like Ron Paul and foreign governments demanded another audit. Germany was threatening to relocate their US holdings at the time due to a lack of transparency, and had been increasingly calling for an audit in the decades leading up to 2012. To appease doubters, the Treasury OIG conducted another limited audit.

The 2012-2013 NY Fed Audit scope included 34,201 US-owned gold bars (418 tons). Less than 1% (367 bars) were tested for purity. Auditors did not weigh the gold, nor did they conduct a full inventory. All compartments were to remain sealed unless they had reason to suspect tampering. Again, no independent assayers were admitted. Worse, foreign holdings were not inspected. Germany’s gold, for example, was not reviewed but they maintained trust in the US government despite some backlash.

Fast-forward to 2025: DOGE is uncovering government waste and mismanagement and has set its sights on Fort Knox. The US Treasury declared any audit a breach of national security. A true audit of Fort Knox, not including the NY Fed, would take 18-24 months and require 44,000 hours. Foreign governments now have a seemingly plausible reason to point their finger at the US and call “FOUL PLAY!”

Here’s the thing–no nation completely audits its gold holdings. The UAE, for example, implemented mandatory annual audits but only examined 10-20% of its holdings. There is limited transparency as their audits are classified, but they do permit third-party audits and follow London Bullion Market Association (LBMA) standards. Switzerland also follows LBMA standards and conducts regular audits, but auditors only check seals as there is no physical count. Switzerland is far more transparent about its auditing process, but again, they are only looking at a small percentage of overall holdings and not weighing or physically assessing the gold. Any nation could point the finger at another and question the validity of its stockpile.

As for US gold holdings, there have not been any official sales. If anything is missing, then that means it was stolen. However, the media is honing in on the US without understanding that no foreign nation conducts a full audit of their gold holdings. It all comes down to trust in the government, not only the current administration but every administration that has come to pass.