Gyroscopic Investing

http://www.latimes.com/business/la-fi-g ... full.story

The federal government has quietly been completing an audit of U.S. gold stored at the New York Fed. The effort included drilling small holes in the bars to test their purity.

The Treasury Department has refused to disclose what the audit has revealed so far, saying the results will be announced by year's end. But as one former top Fed official said recently, the testing may finally prove that "Goldfinger didn't sneak in at night" and take the gold.

smurff wrote: http://www.latimes.com/business/la-fi-g ... full.story

The federal government has quietly been completing an audit of U.S. gold stored at the New York Fed. The effort included drilling small holes in the bars to test their purity.

The Treasury Department has refused to disclose what the audit has revealed so far, saying the results will be announced by year's end. But as one former top Fed official said recently, the testing may finally prove that "Goldfinger didn't sneak in at night" and take the gold.

This was actually a good idea. I am not a conspiracy theorist at all. But a lot of our gold reserves have not been seen by human eyes since the 1930's and lie in sealed vaults at Ft. Knox. It seems to me that 75 years is a long time to go without an audit. They should conduct a full scale physical audit of all the gold held by either the Treasury or the Fed.

As I used to say when I ran the post office on my ship in the Navy...

"In God I trust. Everyone else I double count."

smurff wrote: The Treasury Department has refused to disclose what the audit has revealed so far, saying the results will be announced by year's end. But as one former top Fed official said recently, the testing may finally prove that "Goldfinger didn't sneak in at night" and take the gold.

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I thought the question was whether there was any gold still at Fort Knox, not under the Federal Reserve in DC.

ZH has an interesting critique of the audit and why it misses the point entirely:

http://www.zerohedge.com/news/feds-gold ... s-treasury

It's not the gold itself that's the problem. The problem is the alleged paper contracts associated with the gold.

It's all for show. Probably to reassure other countries whose gold is stored there that some form of inspection does take place particularly since so many citizens of various countries are demanding that their gold be repatriated.

Almost anyone can visit the gold vaults at the New York Fed and see the gold there. I did, last year.  But I doubt that would be allowed at Fort Knox.  That's where the audit should be.

And the so-called Fed audit won't answer questions posed by Gumby--including whether any of our gold is lent or leased to other countries, how many outstanding private (through ETFs and other forms of paper, for example) claims there are on each ounce of gold, etc.

As an air traffic controller I recently worked a military flight from Stewart, NY (near West Point) to the Fort Knox airport in Kentucky. I was extra careful with that flight.

Thank you, Reub. You are the salvation of the US economy. 

The mint at West Point makes all those gold and silver eagles.  My PP will go on.