Fort Knox opened to civilians for the first time in 40 years

For much of the country, yesterday was “eclipse day.” But at Fort Knox, the big yellow wasn’t being covered up—it was being revealed: for the first time in 40 years, the U.S. Bullion Depository there was opened to civilians.

The Washington Examiner reported that yesterday (August 21), at the behest of the treasury secretary, Steve Mnuchin, the depository was to be opened to a delegation of politicians. The Washington Post later reported that the party included Mnuchin, Senate Majority Leader Mitch McConnell, U.S. Representative Brett Guthrie (R-KY), Kentucky’s governor, Matt Bevin, and several journalists.

McConnell said that the idea of visiting the $186 billion in gold assets “just kind of came up as a result of a casual conversation.” He declined to say much about the visit because of security concerns. Governor Bevin, in an interview on Louisville’s WHAS radio (840 AM), described the process of entering and leaving the vaults as being time-consuming, and said that officials had to break one of the famous vault seals to give them access. Stating that the gold was, indeed, safe, Bevin described it as being “freakishly well secured.”



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Comments

  1. Qui Transtulit Sustinet says

    @cagcrisp

    It is not a revelation that if you bought bullion or numismatic (vapor blasted ‘P’) silver ATB’s , which are both tied to the price of silver by their sellers, at or near the 2011 price of silver (the recent peak price), you are probably underwater on most purchases.

    I wasn’t buying silver during the 2011 spike. Before and after it, I was. As you so often post, I buy when “the price is Right”, for me.

    Since the price of silver is a moving target, comparing sales prices during the mid-point of a price peak— 2010, 2011, 2012— with sales prices in a declining market four to six years later (2016) will yield obvious results.

    Timing when to buy and sell requires patience and a reasonable, but indeterminate time frame.

    Short term Trader mentality is not commensurate with long term investing, in silver or stocks.

    Holding periods do matter.

  2. Qui Transtulit Sustinet says

    @KCSO

    Yes, demand (from industry or any other source) is a key part of the pricing process.

    Do not lose sight however, of supply and supply depletion (unlike gold, silver is much less likely to be recycled) issues, and ever changing demand diversification (solar energy wasn’t dreamed of by the Bolivian miners that made Potosi the richest Province in the Spanish Empire) not to mention the ages old “store of value” history.

  3. My Preccciousss says

    KCSO-

    In addition to industrial demand, we have just barely begun to tap silver as a medical application. As I understand it, the antibiotic properties are phenomenal and we have only seen the beginning of how it may by used in this regard.

  4. Qui Transtulit Sustinet says

    @Just Another Dave in PA says

    Re: a person as the dominant theme on an ATB—I agree with your thoughts, especially when the person depicted is simply a generic “add-on”.

    IMO, the most egregious example is the dominant generic “frontiersman” on the Cumberland Gap issue.

    The generic “hiker”on the Shenandoah and “father and son” on Great Sand Dunes are also distractions, but at least they are much smaller.

    The kayaker on the 2018 Apostle Islands is also fairly small, but equally unnecessary.

    Sgt. Jasper (Fort Moultrie) was a specific real person very closely tied to the history of the site, as were Teddy Roosevelt, Frederick Douglass, and George Rogers Clark (2018, but who are his “two men”?), and I don’t have a problem with their being a part of the design.

  5. sharks2th says

    @KCSO – Your point on lithium is spot on. Keep in mind in 2300 we will need lithium to make those dilithium crystals to power our starships to travel at multiples of light speed. Buy it now for future generations to hold on to the family wealth🚀.

    Silver has long been used as an antiseptic/antibacterial metal, as far back as the time of the Phoenicians. Many hospitals are “rediscovering” the properties of silver by embedding it in the metal tools and surfaces in hospitals to reduce the chances of MRSA outbreaks. Silver disrupts the ability of bacteria to form chemical bonds, thereby disrupting the cell’s functions and life. There was some benefit to having silver coins because minute amounts would rub off on one’s hands when handing coins, providing an effect similar to the current hand sanitizers.

  6. cagcrisp says

    Those of you that are Silver Bugs better look at the fundamentals involving the supply/demand from some Silver miners.

    I follow Toronto based Pan American Silver (PAAS:NASDAQ) one of the top Silver producers in the world. Their 6-k came out August 9th for results Q2 ending 06/30/17. The stock price “gaped up” on results. The reason the stock gaped up Not because of forward guidance in regards to Silver pricing but because of cash cost reductions and cash cost reductions projected for the entirety of 2017.

    Guidance previously for cash costs were $6.45-$7.45 /oz. They NOW cut cash cost guidance to 5.50-$6.50/oz.

    Cash costs Down 14%. That’s major for Silver production. The day the guidance was given the stock jumped ~ 8%.

    Now PAAS does not currently hedge against Silver prices. Instead “The Company mitigates the price risk associated with its base metal production by committing some of its forecasted base metal production from time to time under forward sales and option contracts.”

    What I have noticed is that when Silver futures prices Approach the $19.50-$20.00/oz. range, most of the Silver miners step up sales of futures contracts.

    As long as Silver cash costs remain in the $5.50-$6.50/oz. range they will continue to maintain the current aggressive posture. Q2 Silver production was 6.3 million oz. and they maintained in line annual forecast of between 24.5 and 26.0 million oz. of Silver for FY17…

  7. Erik H says

    cagcris, I’m still mad I didn’t pull the trigger on PAAS that morning before it gapped up. I went with another trade instead. If I bought PAAS first I could have been in & out then use my profits to buy more physical. I’m still long some PAAS but a quick 8% is always nice.

  8. Joe M. says

    I’m still buying silver. I’m long-term and have been buying under $18. I mainly buy 90% US dimes, quarters, and halves between 11 and 13 x face. I always keep the Mercury dimes and Walking Liberty halves for sets/rolls for verrrrrrry long-term.
    If it spikes over $25, that’s when I’ll consider selling.
    🙂

  9. NCM Collector says

    Unicorns poo silver.
    Unicorns are neat freaks and live very close to the edge of the flat earth so they can poo over the edge.
    Thus, silver is rare.

  10. Joe M. says

    Solid gold is what Unicorns poo,
    for me and you.
    For when it roams,
    it passes homes,
    eating and drinking the flora and fauna.
    And when it poos upon the grass, don’t worry,
    it’s gold not something stinky from the A@@
    😉

  11. data dave says

    Premium on the Ellis Island 5 ox bullion puck is $3.50 per ounce. $4.50 per ounce for singles. So about $22 per ounce at current prices. ASEs are $21 per ounce at same site. My records show this is pretty typical premium on issue day for the pucks.

    I’d be willing to trade a tube of 2012 ASEs for any 4 2012 ATB pucks and I’ll even through in an extra one for the premium difference.

  12. cagcrisp says

    @data dave, I bought my Tube of 2017 ASEs for ~ $18.90/oz. Big Difference than the price you’re quoting.

    You gotta know if/when to buy them and Not buy them when the price Spikes up…

  13. Louis Golino says

    Can the dollar keep going lower, without some reversal? And can gold keep above $1300 without a temporary reversal? To me these are the issues of the day worth discussing and sharing info. about.

    I don’t know, but I think after a day with a $20 gold spike, I would expect some profit taking. So maybe don’t buy today. But I also don’t see it going much below $1300 anytime soon given fundamentals, charts, etc. Not to mention Hurricane Harvey is likely to cause a dip in the economy, though also some growth with rebuilding, but that will take years. Many people won’t be going back to work for months I am hearing, so lot’s of economic downside, not to mention the human tragedy of course.

  14. John Q. Coinage says

    Data Dave- As to Munchkin looking @ the eclipse in Kentucy @ Ft. Know & him being in a bad light, he has no good light, this guy is a real swampbeast, profteer & slimey money manager, he offshored $$ for non-profits to help w/taxes !? Huh, I wonder why no one asked him IF they are legit non-profit why do they need to park their ca$h offshore? Huh, he dumped wfe #2 for his current trophy concubine, he foreclosed on many for < on Buck….and a creepy Travoltaeque toupee~…..drained right into theCabinet of Trump, the POTUS own Rogue's Gallery mostly……Price, Pruitt, all shills for big boys & industrial, banking or energy giants……and did Muchkin even mention the gold? He wants a cut I bet!

  15. says

    I noticed the bullion 5 oz Ellis Island sales to the AP’S is 29,500….well above the 20,000 for Douglas and Ozark

  16. Rob says

    For GOLD bugs
    A naïve question:is gold rising on uncertainty? – inflation seems in check. Is this an industrial / general metals rally?

  17. cagcrisp says

    @Rob, I’m Not a Gold Bug, however, I will answer your question.

    Today’s rise in PM’s is two fold in my opinion.

    1. The US dollar Continues to decline in value vs. a basket of currencies. Regardless on any other thing, IF the US dollar declines Gold has to increase because Gold is dollar denominated.

    2. With the drop in GDP because of Hurricane Harvey Wall Street believes the Fed will be Less Likely to raise interest rate. If interest rates stay low, Precious metals benefit…

  18. cagcrisp says

    NOW.. Precious metals are Up because North Korea fired a “projectile ” over a small portion of Japan.

    Dow futures down 100.

    Never ending cycle with North Korea…

  19. earthling says

    They need to set up “Trips” to NK for Big Game Hunters and/ or ex Military. I’ll bet business would be good.

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