US Government Audits Gold at the New York Fed

There is a vault five stories underneath Manhattan in the Federal Reserve’s
facilities near Wall Street. A large amount of the gold holdings of the US government
is said to be housed there, though recent trends have given rise to the popularity in
conspiracy theories that the gold, valued in the multi-billion dollar range has been
swapped, misplaced, or moved. The wave of speculation has even hit Congressman Ron
Paul and members of the German Parliament.

Now, a decision by the US government to quietly audit the US gold stored at the
New York Federal Reserve may put an end to those speculations and theories. Included
in this audit will be tests for purity, which include the drilling of small holes in the gold
bars to ensure the bars are entirely gold bullion and not simply coated with a layer of

The Treasury Department has not disclosed the results of the audit thus far,
instead indicating that the results will be announced by the end of the year.

Ted Truman, a former assistant Treasury secretary and Fed official has called the
questions about the country’s reserves of gold the equivalent to the birther movement and
a declaration that the US government cannot be trusted for the last 200 years.

The audit by the Treasury, drilling included, is a first for the New York Fed.
Previous to the current audit, the inspector general audited or tested only the gold kept
under heavy guard at Ft. Knox, West Point, and the US Mint in Denver. Together, these
three locations house 95 percent of the country’s gold bullion.

Inside the New York Fed’s vault, $21 billion worth of US gold is housed.
Three dozen other countries and organizations house gold in the vault, including the
International Monetary Fund. About 23 percent of the world’s official gold reserves are
stored in the central bank’s vaults.

The audit began in January, 80 feet below the Federal Reserve building in
Manhattan’s financial district where a 90-ton door rotates open to admit entrants.

The bars are weighed on a small electronic scale, then moved to a table mounted
with a long, thin drill, which is used to burrow deep into the gold, according to source
familiar with the operation of the audit.

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