Elon Musk’s Department of Government Efficiency (D.O.G.E) has taken on a new mission to verify the existence of the 4,580 tons of gold the U.S. claims to hold in Fort Knox. The subject was brought to his attention when a user on platform X asked Musk to investigate the existence of the U.S. gold reserves.
Musk responded by asserting that the stockpile should be audited annually. The U.S. Treasury maintains Fort Knox is home to $425 billion worth of gold at market rates, though the last time the vault was visually inspected was in 2017 during a visit by then-Treasury Secretary Steve Mnuchin.
Prior to Mnuchin’s visit, the last recorded instance of the vault being opened to outsiders was in 1974. This was in response to spreading rumors about missing gold. The vault remains one of the most heavily guarded places on the planet, with no single individual privy to all the steps required to open it.
Musk’s comment incited a flurry of political responses, including Senator Rand Paul demanding an official audit and Senator Cynthia Lummis suggesting Bitcoin as a radical alternative to gold.
Paul, a long-time advocate for government transparency, was quick to join the conversation, expressing a desire for a comprehensive audit of the reserves. His father, Ron Paul, has previously argued for gold audits, contending that Americans have no concrete evidence of the gold’s existence.
Lummis retorted with her belief that Bitcoin could rectify the situation, as reserves of the cryptocurrency could be audited at any time using a basic computer. Musk responded to her suggestion with a thinking emoji, indicating that he was pondering her suggestion.
Lummis’ proposal involves replacing gold with Bitcoin to create a U.S. strategic BTC reserve. The U.S. Mint claims Fort Knox holds 147.3 million ounces of gold. However, the government values it at only $42.22 per ounce, totalling $6.2 billion. Given the current market value of gold, approximately $2,900 per ounce, the actual value of the gold is closer to $425 billion.
Lummis has already introduced the BITCOIN Act, outlining a plan for the U.S. to establish its first Bitcoin reserve. The plan includes the acquisition of 1 million Bitcoin, constituting 5% of the total supply. She also advocates for Bitcoin vaults managed by the U.S. Treasury, featuring robust physical and digital security measures.
Furthermore, Lummis proposes legal protections for Bitcoin self-custody, ensuring Americans can hold their BTC without interference. In a post on platform X, Lummis likened the plan to the “Louisiana Purchase moment,” referring to the significant land acquisition that doubled U.S. territory in 1803.
Unexpectedly, her proposal received support from Donald Trump, who has previously considered creating a sovereign wealth fund backed by Bitcoin. His endorsement could be pivotal in determining whether Congress approves or rejects the reserve.
Lummis proposes using the 200,000 BTC currently held by the U.S. government, primarily from asset seizures by U.S. Marshals, to initiate the reserve. She is also considering converting old U.S. gold certificates into BTC, integrating Bitcoin directly into the federal financial system.
Meanwhile, several states, including Pennsylvania, Texas, Wyoming, Arizona, and Wisconsin, are exploring the establishment of state-based Bitcoin reserves, with more expected to follow.
