Did you know that Fort Knox is home to nearly 60% of the United States’ gold reserve? Fort Knox, also known as the U.S. Bullion Depository, contains over 4,500 tons of gold. Here’s a fun fact: if you stacked each gold brick on top of the other, the pile would exceed the height of Mount Everest! Now, this might seem like a ton of gold, but surprisingly, if you calculate its current value, it amounts to roughly $298 billion. To put it into perspective, Elon Musk’s net worth was higher than this until he decided to buy Twitter.
Back in the day, Fort Knox safeguarded even larger deposits and priceless items like the Declaration of Independence. Today, we’ll wander down history lane to explore the legacy of Fort Knox, its unbeatable security measures, and the crucial role it still plays in finance.
In 1933, during the Great Depression, President Franklin D. Roosevelt took a desperate yet decisive action by establishing a government monopoly on gold. His administration banned private ownership of gold and began buying it back from the public. Once they had amassed a significant chunk of the nation’s gold, Roosevelt then upped the dollar rate to $35 per ounce, making gold about 69% more valuable overnight. This allowed the government to inflate the money supply with the increased value of gold.
But here’s the kicker: where would you stash over a thousand tons of gold, especially when another global conflict seemed imminent? Enter Fort Knox. This military base was handpicked as the prime location for a new vault to store all that gold due to its defensible inland position, unlike vulnerable coastal cities. As soon as the fort was up and running, gold reserves there tripled in size thanks to vast shipments of gold from Europe, due to rising political tensions and increased weapon exports from the U.S.
By March 1941, the Fort Knox depository held a staggering 19,757 tons of gold. That’s over 696 million ounces, valued at roughly $513 billion back then. Adjusting this amount for today’s value? Around $1.3 trillion! To guard such a treasure trove, the U.S. government implemented extreme security measures, earning the phrase “as safe as Fort Knox.” The facility was surrounded by high steel fences with razor wires, and allegedly, these were electrified. The grounds were rumored to be sprinkled with landmines, and there were automatic machine guns triggered by lasers.
Security didn’t end there – the guards at Fort Knox had orders to shoot any trespassers on sight. If anyone so much as got past all those defenses, they’d face a two-story basement made of granite and steel, supported by a 10-foot-thick concrete mat. Beneath all of this lies the vault, with a door 21 inches thick and weighing about 20 tons, made from torch and drill-resistant material. Opening it requires several combinations, with each combination known only to the specific staff member who holds it individually. And forget digging your way in: the vault casing comprises 25-inch thick steel plates, reinforced with concrete.
On top of everything else, Fort Knox has its own emergency water supply and power station. And lest we forget, it’s located next to a large U.S. military base, with personnel ready to defend it at a moment’s notice. This setup sounds straight out of a Mission Impossible movie, right?
Over the years, conspiracy theories have swirled around Fort Knox, with many claiming the gold has vanished. To debunk these rumors, the vault’s overseers opened it to the public in 2017, inviting senior politicians to confirm that the gold was indeed present – and yes, everything was where it should be. Yet these rumors pose a fascinating question: what if the gold in Fort Knox actually went missing? How would it impact the U.S. economy?
Interestingly, not much. Today, the U.S. dollar isn’t backed by gold. Its value floats freely in the market, a drastic change from when Fort Knox’s gold was essential due to the gold standard. This system ended in 1971 when President Richard Nixon assured Americans their dollars would retain value without gold backing.
So why keep Fort Knox’s gold depository operational? Alan Greenspan, former Federal Reserve Board Chairman, summed it up perfectly: “Just in case we need it.” Gold is a highly liquid asset and retains its value well, serving as a reliable insurance policy against severe economic downturns. This monetary stability is precisely why gold remained a benchmark for many currencies for ages.
Speaking of the gold standard, it wasn’t initially intended to be a monetary standard—it was actually the result of a significant error by one man. That story is a tale for another time, but it’s a fascinating glimpse into history.
In summary, Fort Knox isn’t just a vault. It’s a fortress of history, security, and economic safety netting that continues to intrigue and safeguard, capturing the essence of financial resilience in the United States. With its impenetrable defenses and storied past, Fort Knox symbolizes the enduring, whether in bricks of gold or mountains of history.
