04/28/2026 • Power & Market • Jp Cortez
The bulk of the US gold reserves held in Fort Knox are made up of impure “non-standard” bars that don’t qualify for use in international settlements. In practice, this means that most of America’s massive gold stockpile is illiquid and wouldn’t be readily accepted on the international market should the need arise:
“It’s a decrepit relic just like our monetary policy is. With respect to America’s gold stockpile, we hold ourselves to a lower standard than the rest of the world,” Money Metals CEO Stefan Gleason said.
The French central bank recently sold 129 tonnes of similar non-standard gold that was stored in New York and replaced it with higher-quality bars that will remain in France.
Notwithstanding the lack of any credible physical audits for decades, US gold reserves are reported to be 8,133.5 metric tons. That’s roughly 261.5 million troy ounces. About half of that (147.3 million ounces according to the US Mint) is stored at Fort Knox. The rest is spread out between the Denver Mint, the West Point Bullion Depository, and the Federal Reserve vault in New York.
America’s gold is valued at $42.22 per ounce by statute. The price does not fluctuate with market movements.
According to the London Bullion Market Association (LBMA), gold bars must contain 350 to 430 fine troy ounces and have a minimum fineness of 995.0 parts per thousand to be acceptable for international settlements. In fact, the “good delivery” standards across the globe have been transitioning to 0.9999 purity.
Based on documents released during a 2011 House Committee on Financial Services Hearing, however, we find only around 17 percent of the gold bars held by the US government in Fort Knox meet any modern-day purity standards.
Here’s a breakdown of the purity of the gold bars held in Fort Knox:
Fineness between 899 and 901 – 64 percent
Fineness between 901.1 and 915.4 – 2 percent
Fineness between 915.5 and .917 – 17 percent
Fineness of 0.995 or higher – 17 percent
The average purity of US gold reserves is 916.7
Keep in mind, we’re operating on guesswork here because the US government’s gold holdings have not been audited since at least the 1970s.
In 1974, the government put together a publicity stunt in the name of an audit. The US Treasury opened just one of its 15 Fort Knox vault compartments to politicians and reporters to view the gold and confirm its existence.
That’s been called an audit. However, none of the bars that were passed around were ever matched to a serial number, assayed or tested for purity, or even verified as part of the United States’ holdings. As Sound Money Defense League Director Matthew Cortez pointed out, “It seems the made-for-TV spectacle in 1974 was more of a pep rally than any credible proof of what the amount of US gold purported to be in those vaults.”
Following the 1974 publicity stunt, the US Treasury says it conducted a multi-year process of opening and inventorying vault compartments and affixing new tamper-evident seals to the doors of each compartment upon completion. However, these so-called audits failed to meet basic transparency or accounting standards.
Some reports have since gone missing, and there is no record of comprehensive assaying, weighing, or transactional history available to the public.
Furthermore, there is evidence that seals on vault compartments have been broken over the years, bars have been moved for unknown reasons, and seals have been re-affixed without fresh auditing. Subsequent annual reviews of the schedules of compartment seals serve only to whitewash the prior discrepancies.
In sum, the US Treasury’s management of US gold reserves is replete with audit “no-nos” that would never pass muster at a responsibly run private depository.
An “audit the gold” bill introduced by Sen. Mike Lee (R-Utah) last year would not only require a comprehensive audit of US gold reserves, including, importantly, an accounting of any transactions involving said gold. It would also require the Treasury to refine all non-standard bars so that they meet modern requirements for international settlements—a process that could take several years.
https://mises.org/power-market/ft-knox-full-impure-gold-unfit-international-transactions