Gold Bullion In The United States Part One: Fort Knox

Fort Knox, Kentucky, which was opened in 1937, holds one of the largest deposits of the United State’s gold bullion and gold reserves.

The Fort Knox facility holds more than 4,603 tons of gold bullion. This deposit is second only to the Federal Reserve Bank of New York, which also has an underground vault at its Manhattan location as trust for U.S. Banks and foreign organizations.

Due to the gold call-in of 1933 under FDR, all gold and gold bullion – with the exception of collectible gold coins – were confiscated by the government, as the government declared private ownership of gold an illegal act (see our other article, The 1933 Gold Call-In: What, How, Why for more information on this topic). This, of course, was later re-legislated by Nixon so that governmental gold hoarding could only be exercised in times of war and was not justified by a banking crisis.

Due to the forced selling of gold by citizens and buying of gold by the government, vast amounts of gold were acquired by the U.S. mints, and few adequate places of storage existed. The United States Department of Treasury constructed the Fort Knox, KY U.S. Bullion Depository in 1936. The land was granted by the military and cost $560,000 to construct. The physical transferring of the gold to the facility took more than seven months to move the bullion from banks across the country to the new location, requiring 500 railroad cars and the United States Postal Service to transport.

The Fort Knox institution has served as housing and storage for the U.S. Declaration of Independence, Constitution, the Articles of Confederation, Lincoln's Gettysburg address, three volumes of the Gutenberg Bible, Lincoln's second inaugural address and the Magna Carta. The crown, sword, scepter, orb, and cape of St. Stephen, King of Hungary also were stored at the Depository, before being returned to the government of Hungary in 1978. The vault has consistently held foreign reserves and other significant historical documents for periods in history.

Gold value V.S Chocolate value

Gold has been a staple of economics for many years because of its brick by brick building placement in currencies around the world. Gold stands as the foundation of currency, and the price of currency is most often based on the price of the gold bullion. Chocolate, a favorite of American sweets nationwide, is also plays a key role in American diets. But how do chocolate and gold relate financially?

The Hershey Bar, a favorite American chocolate, was introduced over 100 years ago in 1894. Since then, the brown cut chocolate bar has sold at different prices during different times. In the same way that the price of gold continues to change dramatically over time, the Hersey Bar has moved along with it.

The value of gold is always changing, and has been so since its discovery. But what does that mean for America’s famed chocolate bar? It’s value has also jumped with the price of gold. A chart published by foodtimeline.org shows how gold rules over the economic value of all things, even chocolate bars.

Gold Sales at a Halt as Prices Soar....

Hot news came this week about the U.S. temporarily suspending sales of the American Buffalos due to fear of running out of the treasured coins.

The 24 karat gold American Buffalo coins were first introduced in 2006. The coins were authorized by Congress for the United States to enter international gold bullion market with competing coins like the South African Krugerrand and the Canadian Maple. The American Buffalos hold a face value of $50, but are priced accordingly with the international gold market. The coin is a one ounce gold bullion coin.

Due to the ongoing economic crisis, consumers are flocking to gold as a safe hedge against inflation. The current demand for the American Buffalo has exceeded the supply and the Mint is depleted of inventory. Sales were temporarily suspended due to demand up over 54% from a year ago

We will be paying attention to the current gold situation…..Cash4Gold.com is your source for selling old or unwanted gold. We buy old or broken jewelry, gold coins, or broken items containing gold. Visit our website at www.cash4gold.com to see the prices we pay when you sell your gold!

Gold Selling Futures

This week, The Gold Report spoke with John Embry, a Chief Investment Strategist for Sprott Asset Management and gold expert. Embry predicts four-digit gold by January 2009. He blames the recent fall of gold on “violent intervention by the paper players”.

Embry predicts, in turn, that there will be a “violent reaction in the gold price soon”, due to the fact that it will spring back. Embry also predicts mergers and acquisitions of smaller mining companies that cannot afford the rising costs at this time, stating that many mines need gold to be at $1200 an ounce in order to turn a profit. The mining companies currently doing well have a significant cash flow.

Lots of debt – stuck creating more to bail the situation out – deflation. Embry also cites the 1930s when the best performing commodities were gold stocks. He recommends a core holding of bullion.

Embry went on to say, “It’s always best to talk when things are at their worst because I think that’s when the opportunity is the greatest.”

Take the opportunity today to make cash off of your old gold jewelry that you don’t want or wear! Visit www.cash4gold.com for more information!

Gold Sales to Increase Worth of Metal?

This week’s update on gold pricing may predict rising futures for the metal.

Reuters UK reported that due to hardships being experienced by the U.S. banking industry, gold might be headed for a run.

This week, oil fell below $10 a barrel for 7 month lows, Lehman Bros filed for bankruptcy protection, and Merrill Lynch was acquired by Bank of America.   The weaker dollar could trigger a rise in demand for commodities, like gold.

Gold jumped 2.5% to over $784 an ounce following last Thursday’s 11-month low of $736.  Bullion, on the other hand, was trading at $775.60 an ounce.

Gold is often considered a safe haven during financial crises, and many economists are predicting that it is not performing at its peak ability yet.  Gold’s futures will also be determined by watching if the euro reacts strongly or weakly to the dollar.

Many economists are also questioning what will happen when much of the supply of gold is purchased...

Take advantage of rising gold prices and sell your gold at Cash4Gold.com today!  Visit www.cash4gold.com for more information….

GOLD REPORT: BUY OR SELL

Those doubting the security of owning gold and selling gold for profit should take a few factors into consideration this week.  Fannie Mae and Freddie Mac were taken over by the government this week, after a stunning financial collapse of the housing entities. 

However, on Tuesday, gold fell below $800 an ounce for the first time, reaching ultimate lows of $795.00.  The last decline of this magnitude was in mid-August at $773.90/oz.  The last high for gold was on March 17^th at $1,030.80 an ounce. 

Many are expecting gold at $1,225 an ounce, but yesterday’s rise - where the dollar hit a one-year high - did not increase the precious metal’s pricing.

Physical buying of gold is anticipated to increase in coming months.  The festive seasons in India, requiring gold bullion.  Bullion was priced at $987.75 an ounce in mid-July and has since fallen to $800 an ounce, but can be expected to rise due to the shortage.

Check back with us for additional information about buying and selling gold.

It’s always a good time to sell your gold at Cash4Gold.com.  Because we are the refinery, we are able to offer better returns than other gold buyers!  Visit our website at www.cash4gold.com for more information.

Indians melt down gold jewelry as prices soar

On the streets of India, the world’s largest consumer of gold, people rush to melt down gold jewelry and gold watches to cash in on high gold prices. Gold refineries have been struggling to keep up with demand as gold prices soared over the past months. Gold prices are very volatile, therefore gold and gold scrap must be turned around very quickly by the gold and precious metal refiners. If gold scrap lands up in the evening, it should be ready early next morning and in the market before it opens.

At a refinery, a workman covered with sweat used huge tongs to pour a container of red-hot liquid gold into a mould. On the top floor, large reaction tanks full of nitric and hydrochloric acid dissolve gold scraps through the night for production of gold bars early next day. (149)

Gold prices are up nearly fourfold since early 2001. This year alone, bullion has jumped almost 25 percent to a record peak of $1,030.80 an ounce. If you are looking for fast cash for your unwanted gold and jewelry, request the free refiners kit. We buy most unwanted precious metals such as unwanted, broken, or scrap gold, silver, and platnum.