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Thursday, October 14, 2010

What's gold worth if it's a currency???

Last I checked, the dollar doesn't pay any interest, and it LOSES value.

So what is that worth?

Less each day!!

The dollar goes down quicker than Obama's numbers.

So what then, is gold worth?

More each day!

And, if you really want to do the math on Ft. Knox gold reserves, (since no-one in our Government will allow an audit of the reserve of gold that aren't in Ft. Knox) let's use Governemnet figures to do a proper job of estimating!

Our government claims that we have 261,499,000  ounces of gold.

So they claim.

They also value the gold at Ft. Knox at $42.22 ounce, which was the price of gold in 1973, two years after Bretton Woods was dumped.

So let's multiply 261.499 million ounces by $42.22 and we get $11.37 billion.

Now if we really had 261.499 million ounces of gold, and we multiped that by the current spot price of $1377 we would have over $360 billion dollars of gold, or about 7x the amount of cash that Apple has on it's balance sheet.

But maybe, Treasury doesn't want to lie, and they value the gold at $42.22 because they don't want to overstate the value of the gold that is in the vaults of Ft. Knox

So if we divide the value that Treasury claims the gold is worth of $11.37 billion, by the spot price of gold of $1377,  then you are left with just 8.26 million ounces, or about half of the amount of gold that either the ECB or India has.

So until we have an audit of Ft. Knox, you can just assume that the Government values the gold at $42 because our Government is attempting to keep some honesty in their figures.

Which is why gold keeps on running.

Because even if Ft. Knox's books weren't cooked, our dollar wouldn't be collapsing as fast as it is, even if we had half of the gold that Treasury says that we do!

Obama said he was going to bring transparency to our Government.

That promise is as good as Treasury's promise on Ft. Knox!

Bot BO's still lucky.

In 2012, he'll still be able to sell his teeth!!

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