America’s gold reserves would be audited for the first time in more than 60 years if a measure introduced yesterday by U.S. Representative Alex Mooney (R-WV) becomes law.
The Gold Reserve Transparency Act of 2021 – H.R. 3526 – backed by the Sound Money Defense League, Money Metals Exchange, and free-market activists – calls for the first true audit of United States gold reserves since the Eisenhower administration.
“Given the dramatic levels of debt-financed spending by the federal government and the potential this could trigger an inflationary nightmare, ensuring America’s gold reserves are both secure and fully accounted for has never been more important,” wrote Rep. Mooney in a recent letter to his congressional colleagues about H.R. 3526.
“At the same time, Russia and China are presently accumulating physical gold at a rate that experts believe could soon threaten the financial dominance of the United States and, by extension, our national security,” Mooney continued.
H.R. 3526 would require the Comptroller General to immediately conduct a full assay, inventory, and audit of the United States’ gold reserves and repeat the process every five years.
Meanwhile, there is evidence the U.S. Treasury may have sold, swapped, leased, or otherwise placed encumbrances upon some of America’s gold over time. However, federal government officials have strongly resisted disclosure of these activities for decades.
To address these concerns, H.R. 3526 also requires a full accounting of any and all sales, purchases, disbursements, or receipts, a full accounting of any and all encumbrances, including due to lease, swap, or similar transactions presently in existence or entered into in the past 15 years, and an analysis of the sufficiency of the measures taken to ensure the physical security of such reserves.
To fulfill its obligations under the Gold Reserve Transparency Act, Government Accountability Office auditors would gain access to any depository or other public or private depositories where reserves are kept as well as related records.
“People are rightly concerned about the state of America’s gold holdings,” said Jp Cortez, policy director at the Sound Money Defense League. “The lack of transparency by the Federal Government has hobbled public confidence. The Gold Reserve Transparency Act will ensure our gold reserves are accounted for.”
The full text of the bill, which has been referred to the House Financial Services Committee, can be found here
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