Saturday, November 28, 2009

Did Barack Obama Loot Fort Knox?

An interesting piece of news, somewhat lost in the holiday Friday news fog...apparently, the United States is discontinuing coins made of "precious metals":

The U.S. Mint has suspended sales of most American Eagle coins made from precious metals including gold and silver, citing depleted inventories of the metals after sales surged 88 percent in the first 10 months of this year... Sales of American Eagle gold coins jumped to 1.07 million ounces this year through October, from 568,000 a year earlier, according to the mint's Web site. This month, the mint indicated it sold an additional 124,000 ounces of the coins.

About 23.41 million ounces of silver coins were sold this year through October, and almost 2.59 million more were sold this month, the Web site shows... Last year, the mint sold about 15.38 million ounces of silver American Eagles through October.

U.S. Mint describes the program thusly:

Produced from gold mined in the United States, American Eagles are imprinted with their gold content and legal tender "face" value. An American Eagle's value is based on the market price of its metal content, plus a small premium to cover coinage and distribution.

What truly sets American Eagles apart is that they are the only bullion coins whose weight, content and purity are guaranteed by the United States Government. Investors can buy them with confidence, knowing the coins contain their stated amount of gold. In addition, long-term savers can include American Eagles in their Individual Retirement Accounts (IRAs).

But the sales have been suspended...due to depleted inventories of the metals needed to produce the coins in the first place. Makes sense, like any other business, you must slow production if you are running low on your source material.

Still, there are a number of questions that are raised by this action by the Mint:

-are we really running low on gold and silver? Maybe I was a sucker for urban legends, but I thought "all the gold in Fort Knox", the government's gold, was an insanely large stockpile, meant to provide the nation with a basis in currency even in case of a global apocalypse. Was I mistaken? Or....

- is the government hoarding gold? Maybe even the liberal simpletons in the White House realize that the 24-hour printing-press method of economic management has a finite lifespan, and when it collapses - and the dollar becomes worthless - we will need alternate currency, stat. And what is more valuable today than gold? And how much more powerful will the government be if, when the dollar's collapse is realized, they control the majority of currency (gold) in the market place? Leading me to wonder...

- is the government conspiring to keep gold out of the public's hands by halting the sales of these American Eagle coins? Such a strategy both protects the remaining supply of "Obama's gold", and limits the financial (and political) strength of the civilian investor to whom gold may be their only personal bulwark against a potential US financial catastrophe..

Well, we do know that if the U.S. Mint, under the Bush administration, had limited the supply of gold to willing buyers, the media would be howling....

But either way, something seems fishy here. Has the Mint suddenly run low on gold? If so, how could this be allowed to happen? And if the level of gold held by the federal government is still as vast as rumored, why have they cut off sales to the public?

The fact that Obama has not yet figured out a way to blame this particular mess on Bush makes me all the more suspicious...

1 comment:

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