US Treasury Secretary: Gold Reserves Are Safe But Irrelevant

U.S. Treasury Secretary Scott Bessent confirmed this week that the nation's gold reserves, held at Fort Knox, are safe and accounted for, estimating their value at over $1 trillion. Bessent stated during a Fox News appearance that while the U.S. possesses the world's largest gold stockpile, this physical asset has no impact on the current value of the U.S. dollar. This assertion comes amidst renewed public interest in the gold reserves, including former President Donald Trump's previous calls for an audit due to conspiracy theories about stolen gold.

Fort Knox, established in 1918, began housing U.S. gold reserves in 1937. The U.S. Mint reports that the depository currently holds approximately 147.3 million ounces of gold, valued at about $608 billion. Historically, the gold reserves symbolized the stability of the American currency and economy, particularly after the Gold Reserve Act of 1934, which pegged the U.S. dollar to gold. However, this direct link was severed in 1971 when President Richard Nixon ended the gold standard.

Bessent elaborated on the shift to fiat currency, explaining that the U.S. transitioned away from being backed by silver or gold in the 1970s. He noted that if any historical silver or gold claims remain outstanding, the corresponding metal is still available at Fort Knox for redemption. The Treasury Secretary's comments underscore the modern financial system's reliance on confidence and economic policy rather than a direct commodity backing for currency value. The focus has shifted to other economic drivers, with Bessent suggesting oil as a contemporary equivalent to gold's former status.