Ron Paul worries Fort Knox gold is gone

WASHINGTON (CNNMoney) -- With the price of gold at record highs, presidential candidate Rep. Ron Paul wants to make sure the U.S. gold bars at Fort Knox are really there.
Paul called a congressional hearing Thursday to grill federal officials about his bill to audit and inventory all of the gold reserves at Fort Knox, Ky., West Point, N.Y., and Denver, even though Treasury officials insist that the gold is audited annually and is all there.

During the hearing, Paul suggested that the Federal Reserve of New York, which has 5% of the U.S. gold reserves, has the ability to secretly sell or swap gold with other countries without anyone knowing.

"The Fed is pretty secret, you know," said Paul, who leans Libertarian. "Congress doesn't have much say on what's going on over there. They do a lot of hiding."
Paul, a Texas Republican who wants to convert the U.S. monetary system to one based on the gold standard, says the federal government owes it to taxpayers to make sure U.S.-owned gold is safe. (Ron Paul: Bernanke's biggest critic)
"This is one of the few legitimate functions of government: To check our ownership and be fiscally responsible and find out just what we own and whether it's really there," said Paul, who is among those running for the Republican presidential nomination.
Audits by the Treasury Department and Government Accountability Office are based on samples. Paul wants to open up Fort Knox and other reserves and count the bars manually.
"We know where it is. We know how much there is. We know it's there. None of it has been removed," said Treasury Inspector General Eric Thorson.

Ron Paul, John Boehner, Nancy Pelosi: Peek at their wealth

In September, Treasury completed its latest audit, showing that U.S. gold reserves total 9,300 tons with a market value of $320 billion, Thorson said. The recent run-up in gold prices -- the precious metal is trading at about $1,515 an ounce -- puts the market value at $340 billion as of Wednesday, according to Thorson's testimony. He added that each gold bar weighs about 27 pounds and is worth around $500,000.
Paul said that his questions were partly in response to the numerous Internet conspiracy theories, including those that accuse the government of secretly selling all of the gold in Fort Knox.
Thorson said Treasury doesn't believe that anyone, including the Fed, has taken the gold or laid claim to U.S. gold bars. Any further audit as proposed by Paul's legislation would be redundant, he said.
"There is no movement. There is nothing there that can happen, once those doors are sealed," Thorson said. "It's very obvious if those seals are ever broken."

0:00 / 4:13 A million in gold in this briefcase

William Lacy Clay, a Democratic representative from Missouri, said that doing a complete audit as Paul is calling for is a waste of federal manpower and could cost tens of millions of taxpayer dollars.
Thorson reported that the U.S. Mint told him that moving, counting and testing the gold would cost around $60 million. Paul said he had heard from Treasury that it would only cost $15 million.
Part of the expense would be due to the bill's requirement to "assay" all the gold, said Gary T. Engel, a director of Financial Management and Assurance at GAO. Assaying means drilling little holes in all the gold bars in order to test its purity. But that process is "basically destroying whatever that piece is."
Finally, Engel cautioned, "There will be some loss of the gold from the bars through the assaying process if you do that for every single bar that's out there." 

GREEK SAVERS RUSH FOR GOLD

By Kerin Hope in Athens

Published: June 21 2011 13:50 | Last updated: June 21 2011 22:34

Greek citizens are emptying savings accounts and buying gold as they brace themselves for the possibility of a sovereign default and a run on the banks.

Pledges by socialist prime minister George Papandreou that his government would “save the country” have been widely discounted by the public.

Sales of gold coins have soared as savers seek a safer and fungible source of value.

“When the global financial crisis started, our sales of coins to investors overtook bullion for the first time,” said Harry Krinakis, at Sepheriades, a Greek precious metals trader. “Now the sales ratio has reached five to one.”

Tomas, a computer technician, has exchanged his euro savings for gold coins: “I keep them at home just like my grandmother did in the second world war.”

....

Monthly bank withdrawals were running at €1.5bn-€2bn (£1.3bn-£1.8bn) in the first quarter. Last year, depositors withdrew €30bn, equivalent to 12.3 per cent of total savings, according to the central bank. Greek deposits worth an estimated €8bn were transferred to banks in Cyprus in 2010. But the flow has dried up this year amid fears that Cypriot banks could suffer contagion.

LINK:

http://www.ft.com/cms/s/c986823e-9bf8-11e0-bef9-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fc986823e-9bf8-11e0-bef9-00144feabdc0.html&_i_referer=http%3A%2F%2Fsearch.ft.com%2Fsearch%3FqueryText%3Dgreek%2Bsavers%26ftsearchType%3Dtype_news#axzz1QI8ebrvr

Is Gold Flying Under the Radar?

It’s hard for Americans to understand that gold is an asset that reflects global confidence, not just confidence in America. So arguments against gold that are focused just on America are not entirely valid to me. Even if we solved our debt problems, which is unlikely, there still would be huge sovereign debt crises in the Euro zone and Japan. Although gold would not rise as much as it would with a U.S. debt collapse, it would do just fine because these problems are global.

It is natural for people to think only in terms of their currency when pricing various assets. Because of this currency bias, Americans probably don’t realize that gold is approaching its highs in terms of Euros. Earlier today gold made new all-time highs in British pounds.

We think in terms of demand in the U.S. or inflation rates in the U.S. But are people rioting in Greece not allowed to buy gold? What about people in Spain who see a huge crisis coming? What about people retired in Japan who have been living through a 2 decade depression that is only getting worse? What about people living in nations in Africa and the Middle East that are experiencing social unrest? We must try to understand that it is not only about us.

For years all I’ve been hearing is that the global economy will get better and that the debt crisis is behind us. Instead civil unrest actually rises while the economy stagnates. I’ve previously written about how “bad” things tend to cluster together historically. Why is it that we are experiencing a sovereign debt crisis at the same time we have droughts around the world? I’m not sure, but this is what happened during the Great Depression too. These type of things cycle, and we must deal with it intelligently.

Rising food prices due to the falling dollar and extreme weather globally are creating serious civil unrest around the world. This is the kind of civil unrest that will eventually spread throughout Europe and the U.S. No one has jobs, prices are rising, and our governments are broke. It doesn’t take a genius to figure out this is a formula for serious problems down the line.

Although I presume most people who read this blog are gold bugs, I’m pretty sure most of you are not rushing out to buy gold at $1500. Gold equities look very attractive to me, but I’m also pretty sure most of you are not buying into weakness. So if even gold bugs are apathetic about gold right now, what do you think about everyone else? And are bull markets built on a foundation of apathy or excitement? I’m telling you that the price action in gold is extremely bullish and that this will be very apparent in hindsight.

I am just about pounding the table that you should be buying gold in this period of consolidation. Gold stocks have taken a beating with the stock market even though gold has held up pretty well the last couple of months. These are the kind of divergences you should try to capitalize on. I am loving it that people are apathetic even though gold is approaching its all-time highs; this suggests to me that we may be seeing a rocket launch move soon.

 

These 90 Analysts Believe Gold Will Go to $5,000/ozt. – or More!

By: Lorimer Wilson
http://www.munknee.com/2011/10/is-gold-on-its-way-to-3000-5000-10000-or-even-higher-these-analysts-think-so/ 

Of the 133 analysts who have now gone public in maintaining that gold will eventually go to a parabolic peak price of $2,500/ozt.+ before the bubble bursts, 90 – yes 90, maintain that gold will reach at least $5,000 per ozt. Take a look here at who is projecting what, by when.

Editor’s Note:

1. If you find a name missing from the list below send it to me (editor-at-munKNEE-dot-com) with the URL of the article in which the individual states his/her case so keep the list the most comprehensive on the internet. Only projections of at least $2,500 per troy ounce, accompanied by sound reasons, will be included in the revised list.

3 Analysts See Gold Reaching its Parabolic Peak Sometime in 2011!

1. Bob Kirtley: $10,000;
2. Patrick Kerr: $5,000 – $10,000;
3. Taran Marwah: $3,000;

10 Analysts See Gold Reaching its Peak By the End of 2012

1. Arnold Bock: $10,000;
2. Porter Stansberry: $10,000;
3. Taran Marwah: $6,000+;
4. Greg McCoach: $5,000+;
5. Robert McEwen: $5,000;
6. Mary Anne and Pamela Aden: $3,000 – $5,000;
7. John Paulson: $2,400 – $4,000;
8. Ian McAvity: $2,500 – $3,000;
9. Peter Hambro: $2,500;
10. Charles Nenner: $2,500

These 11 Analysts See Gold Going Parabolic to +$10,000

1. DoctoRX: $20,000 (by 2020);
2. Mike Maloney: $15,000;
3. Ben Davies: $10,000 – $15,000;  
4. Howard Katz: $14,000;
5. Jeffrey Lewis: $7,000 – $14,000;
6. Jim Sinclair: $12,455;
7. Goldrunner: $10,000 – $12,000;
8. Martin Armstrong: $5,000 – $12,000 (by 2015/16);
9. Robin Griffiths: $3,000 – $12,000 (by 2015); 
10. Jim Rickards: $4,000 – $11,000;
11. Roland Watson: $10,800;

These 46 Analysts See Gold Price Peaking Between $5,001 and $10,000

1. Bob Kirtley: $10,000 (by 2011);
2. Arnold Bock: $10,000 (by 2012);
3. Porter Stansberry: $10,000 (by 2012);
4. Peter George: $10,000 (by 2015);
5. Tom Fischer: $10,000;
6. Shayne McGuire: $10,000;
7. Eric Hommelberg: $10,000;
8. David Petch: $6,000 – $10,000;  
9. Gerald Celente: $6,000 – $10,000;
10. Egon von Greyerz: $6,000 – $10,000;
11. Peter Schiff: $5,000 – $10,000 (in 5 to 10 years);
12. Patrick Kerr: $5,000 – $10,000 (by 2011);
13. Peter Millar: $5,000 – $10,000;
14. Roger Wiegand: $5,000 – $10,000;
15. Alf Field: $4,250 – $10,000;
16. Jeff Nielson: $3,000 – $10,000;
17. Dennis van Ek: $9,000 (by 2015);
18. Dominic Frisby: $8,000;
19. Paul Brodsky: $8,000;  
20. James Turk: $8,000 (by 2015);
21. Joseph Russo: $7,000 – $8,000;
22. Bob Chapman: $7,700;                        
23. Michael Rozeff: $2,865 – $7,151;
24. Jim Willie: $7,000;
25. Greg McCoach: $6,500;
26. Dylan Grice: $6,300;
27. Chris Mack: $6,241.64 (by 2015);
28. Chuck DiFalco: $6,214 (by 2018);                                                        
29. Jeff Clark: $6,214;                                                                                          
30. Aubie Baltin: $6,200 (by 2017);
31. Murray Sabrin: $6,153;                                                                                                      
32. Adam Hamilton: $6,000+;                                                     
33. Samuel “Bud” Kress: $6,000 (by 2014);
34. Robert Kientz: $6,000;
35. Harry Schultz: $6,000;
36. John Bougearel: $6,000;
37. David Tice: $5,000 – $6,000;
38. Laurence Hunt: $5,000 – $6,000 (by 2019);
39. Taran Marwah: $3,000 – $6,000+ (by Dec. 2011 and Dec.2012, respectively);       
40. Martin Hutchinson: $3,100 – $5,700;
41. Stephen Leeb: $5,500 (by 2015);
42. Louise Yamada: $5,200;
43. Jeremy Charlesworth: $5,000+;
44. Przemyslaw Radomski: $5,000+;
45. Jason Hamlin: $5,000+;
46. David McAlvany: $5,000+                                   

Cumulative sub-total: 57

These 33 Analysts Believe Gold Price Could Go As High As $5,000

1. David Rosenberg: $5,000;
2. James West: $5,000;
3. Doug Casey: $5,000;
4. Peter Cooper: $5,000;
5. Robert McEwen: $5,000 (by 2012 – 2014);
6. Peter Krauth: $5,000;
7. Tim Iacono: $5,000 (by 2017);
8. Christopher Wyke: $5,000;
9. Frank Barbera: $5,000;
10. John Lee: $5,000;
11. Barry Dawes: $5,000;              
12. Bob Lenzer: $5,000 (by 2015);
13. Steve Betts: $5,000;
14. Stewart Thomson: $5,000;
15. Charles Morris: $5,000 (by 2015);
16. Marvin Clark: $5,000 (by 2015);
17. Eric Sprott: $5,000;
18. Nathan Narusis: $5,000;
19. Bud Conrad: $4,000 – $5,000;
20. Paul Mylchreest: $4,000 – $5,000;
21. Pierre Lassonde: $4,000 – $5,000;
22. Willem Middelkoop: $4,000 – $5,000;
23. Mary Anne and Pamela Aden: $3,000 – $5,000 (by February 2012);
24. James Dines: $3,000 – $5,000;
25. Bill Murphy: $3,000 – $5,000;
26. Bill Bonner: $3,000 – $5,000;
27. Peter Degraaf: $2,500 – $5,000;
28. Eric Janszen: $2,500 – $5,000;
29. Larry Jeddeloh: $2,300 – $5,000 (by 2013);
30. Larry Edelson: $2,300 – $5,000 (by 2015);
31. Luke Burgess: $2,000 – $5,000;
32. Marc Faber: $1,500 – $5,000;   
33. Robert Lloyd-George: $5,000 (by 2014)                                                 

Cumulative sub-total: 90

31 Analysts Believe Gold Will Go Up to Between $3,000 and $4,999

1.    David Moenning: $4,525;

2.    Larry Reaugh: $4,000+;

3.    Ernest Kepper: $4,000;

4.    Mike Knowles: $4,000;

5.    Ian Gordon/Christopher Funston: $4,000;

6.    Barry Elias: $4,000; (by 2020);

7.    Jay Taylor: $3,000 – $4,000;

8.    Christian Barnard: $2,500 – $4,000;

9.    John Paulson: $2,400 – $4,000 (by 2012);

10. Paul Tustain: $3,844;

11. Myles Zyblock: $3,800;

12. Eric Roseman: $2,500 – $3,500 (by 2015);

13. Christopher Wood: $3,360;

14. Franklin Sanders: $3,130;

15. John Henderson: $3,000+ (by 2015 – 17);

16. Michael Berry: $3,000+ (by 2015);

17. Hans Goetti: $3,000;

18. Michael Yorba: $3,000;

19. David Urban; $3,000;

20. Mitchell Langbert: $3,000;

21. Brett Arends: $3,000;

22. Ambrose Evans-Pritchard: $3,000;

23. John Williams: $3,000;

24. Byron King: $3,000;

25. Ron Paul: $3,000 (by 2020);

26. Chris Weber: $3,000 (by 2020);

27. Mark Leibovit: $3,000;

28. Mark O’Byrne: $3,000;

29. Kevin Kerr: $3,000;

30. Frank Holmes: $3,000;

31. Shamik Bhose: $3,000 (by 2014)                                                               

Cumulative sub-total: 121

These 12 Analysts Believe Gold Will Go to Between $2,500 and $3,000

1. Ian McAvity: $2,500 – $3,000 (by 2012);
2. Jeff Nichols: $2,000 – $3,000;
3. Graham French: $2,000 – $3,000;
4. Bank of America Merrill Lynch: $2,000 – $3,000;                                                 
5. Joe Foster: $2,000 – $3,000 (by 2019);                     
6. David Morgan: $2,900;                                            
7. Sascha Opel: $2,500+;
8. Rick Rule: $2,500 (by 2013);
9. Daniel Brebner: $2,500;              
10. James DiGeorgia: $2,500;                
11. Peter Hambro: $2,500 (by 2012);                                                                        
12. Charles Nenner: $2,500 (by 2012 – 13)

Grand Total: 133

Conclusion

There you have it. Who would have believed that 133 distinguished analysts would maintain that gold and by implication, silver, are likely to achieve such lofty levels as a result of the effects of our current financially troubled and volatile times? Their rationale is varied but each is sound in its own right.

If we are to put any credence whatsoever into the rationale presented by the above analysts then it seems prudent to seriously consider owning some physical gold and silver and/or the stocks and/or long-term warrants of those companies that mine these precious metals.

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