New Federal Legislation Requires Full Audit of America's Gold Reserves / Commodities / Gold & Silver 2019

U.S.Representative Alex Mooney (R-WV) introduced legislation this week to providefor the first audit of United States gold reserves since the EisenhowerAdministration.

The Gold Reserve Transparency Act (H.R. 2559) – backed bythe Sound Money Defense League and government accountability advocates –directs the Comptroller of the United States to conduct a “full assay,inventory, and audit of all gold reserves, including any gold in ‘deepstorage,’ of the United States at the place or places where such reserves arekept.”

HR2559 requires more than just a physical assay, inventory, and audit, however.Even if all United States gold can be physically accounted for, it maynevertheless be encumbered with third-party obligations – or otherwise beimpaired by bank financialization.

Therefore,Mooney’s gold audit bill also requires “a full accounting of any and all sales,purchases, disbursements, or receipts… a full accounting of any and allencumbrances, including those due to lease, swap, or similar transactionspresently in existence or entered into [in the past 15 years, and] an analysisof the sufficiency of the measures taken to ensure the physical security ofsuch reserves.”

Over the years, the U.S. Treasuryhas faced allegations that it has sold, swapped, leased, or otherwise placedencumbrances upon some of America’s gold reserves.

Atthe same time, Russia and China are accumulating physical gold at a rate thatexperts believe could ultimately threaten the financial dominance of the UnitedStates and, by extension, national security.

Rep.Mooney’s gold audit bill seeks to restore confidence in the stewardship ofAmerica’s gold, a vital and strategic financial asset that does not carry thecounterparty risks of un-backed national currencies.

"TheU.S. Treasury has neglected to give the American people an understanding andinventory of our nation's gold holdings,” said Rep.Mooney.“After 65 years since the last audit, this legislation would lead to necessarytransparency in accounting for our gold reserves.”

Privategold holdings in preciousmetals depositories are routinely audited, yet the U.S. Treasury has not permitted an audit, assay,and inventory (independent or otherwise) of America’s gold reserves since 1953.

In fact, HR 2559 provides for thefirst true and full audit ever, because the audit during the EisenhowerAdministration was never actually completed. HR 2559 also requires a new auditevery 5 years thereafter.

“Giventhe strategic and monetary importance of gold, there should be no doubt aboutits status and security,” said Jp Cortez, policy director at the Sound Money DefenseLeague.

“TheU.S. Treasury should be held, at a minimum, to the standards of privatedepositories and public companies when it comes to financial governance.”

Thebill directs the Government Accountability Office to provide the results of theaudit to Congress as well as make them available to the public withoutredactions. The text of the H.R. 2559 can be found here.

The SoundMoney Defense League is apublic policy group working to bring back gold and silver as America’sconstitutional money. The organization also maintains America’s Sound Money Index which ranks the sound money policies ofall 50 states.

Stefan Gleason isPresident of Money Metals Exchange, the national precious metals company named 2015"Dealer of the Year" in the United States by an independent globalratings group. A graduate of the University of Florida, Gleason is a seasonedbusiness leader, investor, political strategist, and grassroots activist.Gleason has frequently appeared on national television networks such as CNN, FoxNews,and CNBC, and his writings have appeared in hundreds of publications such asthe Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2019 Stefan Gleason - All Rights Reserved
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