The U.S. Have the Biggest Gold Reserves in the World… or Do They?

As we warned you, gold prices steadied on February 17, as investors reassessed the metal’s recent rally amid heightened trade tensions between the United States and China. It appears that the trend-stop is going to be a consolidation, rather than a correction. You can now form long positions from the $2865/oz level, waiting for prices to break above the last ATH at $2941/oz.

Last week, President Donald Trump signed an executive order on trade duties, but did not specify any immediate tariff increases. At the same time, the possibility of peace talks between Russia and the U.S. materialized, with delegations of both countries now set to meet in Saudi Arabia this week. This could be a short-term deterrent for the metal’s growth.

However, amid these uncertainties gold reserves on the COMEX exchange in New York have surged by over 100% since the November election, reflecting strong investor demand. This has led to supply shortages in London, with waiting times for gold deliveries extending to one to two months.

Meanwhile, gold has entered the political spotlight in the U.S. after Senator Rand Paul publicly endorsed a full audit of Fort Knox (where the Fed’s gold reserves are allegedly held) following a viral social media discussion. The debate over whether the U.S. gold reserves are fully accounted for has resurfaced after Elon Musk engaged with speculation about the state of America's gold holdings.

The last known public inspection of Fort Knox occurred in 1974, when journalists and politicians were allowed access to only one of its 15 vaults for a brief photo-op. However, no assessing of the metal’s purity nor a control of the gold bars’ numbers was carried out. Since then, no independent verification of the Treasury's claimed 4,580 metric tons of gold has taken place.

Now, with Musk’s influence and the rise of investigative efforts by figures associated with the D.O.G.E (Department of Government Efficiency) initiative, pressure is mounting for a proper assessment of America's gold holdings. 

If the U.S. holdings do not exist, it would be of massive impact. A supply shortage of this magnitude, which, according to official data, constitutes almost ¾ of the U.S. foreign reserves, could bring the metalàs price to a surge never seen before in history.

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