In a recent interview, U.S. Treasury Secretary Scott Bessent declared that all American gold is "present and accounted for" and stated that the country's stockpile is now worth more than $1 trillion at current market prices. Best-selling author and libertarian commentator Doug Casey, writing for International Man, challenged those assertions, raising questions about the lack of a physical audit, the historical accuracy of government gold claims, and what the true state of U.S. gold reserves might reveal about the nation's broader financial condition.

"Present and Accounted For" — But Unaudited for Decades

Casey questioned how Bessent could state definitively that the gold is accounted for, noting that there has been no comprehensive audit of U.S. gold reserves for many decades. The United States officially holds the largest gold reserve of any sovereign nation. Assuming the government holds 265 million ounces of gold as officially reported, that quantity would be worth over $1 trillion at current market prices.

However, Casey pointed out that a trillion dollars carries far less weight in today's fiscal context. The U.S. government carries approximately $40 trillion in official national debt, along with actuarial liabilities tied to Medicare, Medicaid, and Social Security, plus contingent liabilities linked to various insurance programs — estimated by some to add another $100 to $200 trillion. Casey invoked the famous quip attributed to Senator Everett Dirksen in the 1960s: "A billion here, a billion there… pretty soon you're talking real money." Today, the conversation has shifted to trillions.

Gold and Silver Certificate Claims Called "Plainly False"

During the same interview, Bessent suggested that anyone holding an old gold or silver certificate could take it to Fort Knox and redeem it for the underlying metal. Casey stated that this is "plainly false." Gold certificates have not been redeemable for gold since 1933, and silver certificate redemption ended in 1968.

"In light of his glib answer to a very simple question, why should anyone trust Bessent's assurances about Fort Knox?" Casey asked.

Casey noted that the U.S. government once reported holding approximately 650 million ounces of gold in its coffers — a figure that has since declined to 265 million. Meanwhile, other world governments, particularly China and Russia, have been steadily accumulating gold, using their dollar reserves to finance those purchases.

What a Credible Audit Would Require

Bessent has stated the gold is accounted for, but he has not personally inspected it. Government accounting reports are distinct from a complete, independent physical audit. The last widely publicized visit to the Fort Knox depository was in 1974, when a group of members of Congress and journalists were briefly allowed to view a single vault compartment. No full independent audit has been conducted since. Casey argued that a flippant response from the Treasury Secretary is inappropriate for such a serious matter.

Casey observed that much of the U.S. gold is believed to be coin melt — .900 fine — dating back to the era when President Franklin D. Roosevelt confiscated gold coins from American citizens, paying them $20 per ounce before unilaterally raising the official price to $35. Only 400-ounce bars of .999 purity qualify as "good delivery" in international markets, raising questions about the form in which the stored gold is held.

Beyond the quantity, Casey raised the question of ownership. The United States stores gold on behalf of numerous foreign governments. Germany, for instance, has been seeking to repatriate its gold for years without full success. It remains unclear whether foreign-owned gold is segregated or commingled with U.S. reserves.

Casey also raised the issue of hypothecation — whether portions of the gold have been lent out. He cited the case of Argentina, where it appears that a significant portion of gold stored in London had been lent out to earn interest. Whether any U.S. gold has been similarly deployed remains unknown.

"There are lots of questions that a thorough, business-like audit could answer," Casey said. "I'm very unimpressed with Bessent's flippant dishonesty, and equally unimpressed with the chances for an audit."

The $42.22 Statutory Price and a Potential Monetary Reset

The U.S. Treasury continues to carry its gold on the books at the statutory price of just $42.22 per ounce, a rate established by Congress in 1973, despite the metal's market value being many multiples higher. Casey suggested the government has no incentive to acknowledge the true market value because doing so would draw scrutiny to the actual state of its finances.

"Since the U.S. government is manifestly bankrupt, at some point the truth will be discovered," Casey stated. "The dollar, for many years, has rested on nothing but confidence. Unfortunately, confidence can blow away like a pile of feathers in a hurricane."

He noted that each successive administration has deferred addressing structural fiscal problems, leaving a larger and more difficult challenge for the next.

Historical Lessons and Individual Action

Casey drew attention to the historical precedent of 1933, when the U.S. government confiscated Americans' gold and subsequently devalued the dollar against it. The convertibility of dollars into gold for foreign governments was itself severed in 1971 when President Richard Nixon closed the gold window, ending the last formal link between the dollar and the metal. Today, the government holds an enormous gold reserve while ordinary citizens are encouraged to save in dollars, government bonds, and retirement accounts.

"One lesson Americans should learn is that the government is a distinct entity," Casey said. "It has its own interests, which are often not only different from, but often at odds to, those of U.S. citizens."

He argued that the government's prime directive — like any organism — is its own survival, which explains why private gold ownership was illegal from 1933 to 1975.

Casey offered a hypothetical calculation: with 265 million ounces in the Treasury and approximately $40 trillion in official debt, the government could theoretically back its obligations by raising the official gold price to $150,000 per ounce. He also noted that the federal government holds approximately 640 million acres of real estate — roughly 28% of the country's total land area — which could theoretically be sold, with proceeds distributed to citizens.

Even so, Casey acknowledged that such measures would not resolve the government's ongoing fiscal imbalance, with annual spending exceeding revenue by approximately $2 trillion.

Casey reiterated his long-standing recommendation that individuals continue accumulating both gold and silver, while noting that neither metal is at the bargain levels seen in past years. "Gold and silver are the only financial assets that are not simultaneously somebody else's liability," he said.

He also urged international diversification, citing political instability as potentially even greater than financial and economic instability. "It's foolish to have everything in just one country," he concluded.

Reprinted with permission from International Man. The original article can be found at GoldSeek.