The fed "claims" to have something like $350 billion dollars worth of gold. So, in a $7 Trillion dollar economy, the dollar certainly isn't back by gold.
The fed refuses to allow congress to inventory the so called stores of gold. Making it logical IMO that they have been playing fast and loose with the gold and how much is really there.
There have been rumors for years about Ft. Knox being empty. Now, other countries have no confidence in the US’ Kenyan. Add to that the kissy face going on between Russia and China. Countries are trying to get their ducks in a row before the start of WWIII.
That in itself should be a very good reason for other countries to bring their gold home.
I, personally, would never have gold mutual funds or gold held in storage for me. But people do. If the gold the gov is holding is not what they claim, in some way does that trickle down to mean that other "in storage" and other indirect gold assets may not be there? I mean, is it that the gold actually in existence is much less than the total "owned" by people and governments?
(I'm suspicious of what the answers are, but would really appreciate input from those who know more than I do)
The US treasury might still have the gold somewhere, but creditors may already have a lien on it. I wouldn’t be surprised if the US has multiple liens on individual units oh gold at this point.
The house of cards will come down, but it will take a crisis to do it.