Money Metals CEO: Missing Gold Would Be a National Security Nightmare

In a recent episode of the Soar Financially podcast, host Kai Hoffmann sat down with Stefan Gleason, the President and CEO of Money Metals Exchange, to discuss shocking irregularities during decades-old Fort Knox gold audits, secret global gold flows, investor behavior, and the broader implications of sound money. 

Gold’s Price Drivers: Central Banks and Geopolitical Uncertainty

As of the interview, gold prices hovered near $2,900 per ounce, a level driven by multiple macroeconomic forces aside from just inflationary reasons. 

Gleason pointed to ongoing central bank buying, particularly from Asian nations like China, which has been removing bars from London vaults every month to increase its reserves. Even during periods when media reports suggested China had paused its acquisitions, trade data showed steady inflows of gold into the country.

Another major factor influencing gold prices is the weaponization of the U.S. dollar. Following the expulsion of Russia from the SWIFT system, many nations sought to reduce their dependence on the dollar, leading to an increase in gold demand. 

In addition, recent U.S. tariffs on foreign metals have created arbitrage opportunities, shifting gold from London and other global markets into the U.S. and adding to the upward price momentum.

Despite gold's recent gains, Gleason cautioned that media hype can create short-term price distortions. Figures such as Elon Musk, Donald Trump, and Joe Rogan have all contributed to the rising interest in gold, but he noted that the broader financial industry still largely ignores or discredits gold as an investment class. 

Unlike Bitcoin and other cryptocurrencies that have been fully embraced by the tech community, gold remains an underappreciated asset among mainstream financial institutions.

Gold Reserves Transparency Act: Solving the Mystery of Fort Knox

A recurring concern in the gold community is whether the U.S. gold reserves at Fort Knox and the Federal Reserve are fully accounted for. Treasury officials claim that the gold is audited annually, but as Gleason explained, these audits consist only of checking the seals on vault compartments rather than physically verifying and assaying the gold.

This lack of transparency has led to speculation about potential leases, swaps, or encumbrances on U.S. gold reserves, which could mean the gold is no longer fully under U.S. control. 

In response, a new piece of legislation, the Gold Reserves Transparency Act, is being prepared for introduction in Congress. Initially sponsored in 2019 and 2021 by Rep. Alex Mooney, the bill aims to:

• Conduct a full inventory and assay of U.S. gold holdings.
• Investigate any encumbrances or pledges of gold to international institutions or financial markets.
• Upgrade lower-purity "coin melt" bars into standard, .9999 fine gold to improve liquidity.
• Implement regular audits every five years.

Gleason warned against any publicity stunts, where politicians visit Fort Knox, see sealed vaults, and declare everything in order without conducting a full forensic audit. He stressed that a serious, independent review is necessary to restore confidence in U.S. gold reserves.

Revaluing Gold & Monetizing Government Assets

Another hot topic in the discussion was the possibility of revaluing gold as a way to monetize U.S. assets and strengthen the national balance sheet. Treasury Secretary Scott Bessent was asked whether gold would be revalued from its official price of $42.22 per ounce to something closer to its market value near $3,000.

Bessent denied and formal gold revaluation plan was under consideration, and Gleason believes Bessent on this score.

Another way to leverage gold reserves would be through gold-backed government bonds, a concept promoted by economist Judy Shelton. This would allow the U.S. to issue long-term debt tied to gold, reinforcing its role as a monetary asset.

In addition to gold, the government could monetize its vast real estate holdings whether it be vacant office buidlings or land, particularly in the western U.S., where federal lands and natural resources could be privatized or used more productively. Gleason suggested that privatization and deregulation of natural resource extraction could also serve as ways to bolster the economy without resorting to excessive money printing.

Retail Gold and Silver Markets: Diverging Trends

Despite rising gold prices, retail investment in gold has actually slowed in the U.S., with more people selling than buying in recent months. Gleason attributed this to:

1. Profit-taking: Many retail investors bought gold at much lower prices and are now selling to lock in gains.
2. Economic pressure: Some sellers may need liquidity due to inflation and financial stress.
3. Election optimism: Following Trump’s rise in the polls, some more conservative investors felt less urgency to hold gold, assuming a return to more prudent economic policies.

At the same time, Asian and central bank demand remains strong, meaning that while retail investors in the West are not driving gold higher, institutional and global forces continue to push prices up.

In contrast, silver has lagged behind gold, maintaining a high gold-to-silver ratio of around 89:1, well above historical averages. While industrial demand for silver—particularly for solar panels and electronics—remains strong, silver's investment demand has not yet surged in the way many expected. Gleason remains bullish on silver and believes it will eventually outperform gold later in the bull cycle.

Tariffs and the Global Gold Flow

Another factor shaping the market is the impact of U.S. tariffs on imported gold and silver. The Biden administration’s 20% tariffs on select metals from China and Mexico have led to:

• Gold rerouting from Mexico to Canadian refiners to avoid tariffs.
• A COMEX short squeeze, where U.S. refineries and traders scrambled to meet demand amid supply disruptions.
• Increased arbitrage trading, as metals flow into the U.S. to take advantage of price discrepancies.

Gleason expressed concerns that these tariffs could create supply chain inefficiencies, potentially hurting both consumers as well as U.S. refiners and bullion businesses.

What Could Stop Gold’s Bull Market?

While most indicators point to continued strength in gold, Gleason outlined potential bearish scenarios:

1. Drastic U.S. fiscal reform – If the government balanced its budget and controlled spending, it could reduce inflation and dampen gold demand.
2. Significant interest rate hikes – If the Federal Reserve were to aggressively tighten monetary policy, it could strengthen the dollar and slow gold’s ascent.
3. A major gold discovery – A large, high-grade gold deposit could increase supply and put downward pressure on prices.
4. Deflationary shock – A severe recession with mass deleveraging could lead to short-term gold selling, similar to what happened during the 2008 financial crisis.

That said, Gleason remains highly bullish on gold and silver, particularly in an era of massive debt, geopolitical instability, and inflationary policies.

Conclusion: The Renaissance of Sound Money

As discussions around gold, fiscal responsibility, and government transparency gain traction, the sound money movement continues to grow. Gleason highlighted the increasing legislative efforts to restore gold’s role in the financial system, as seen in Wyoming’s recent gold reserves bill and Idaho’s tax exemption on precious metals.

With gold near all-time highs, increasing skepticism over fiat currency, and calls for an audit of U.S. reserves, it’s clear that awareness of gold as a key monetary asset is reemerging. Whether through central bank buying, retail investment, or legislative action, the push for sound money is gaining momentum.

For those interested in following policy efforts on sound money, Stefan Gleason recommends visiting moneymetals.com and soundmoneydefense.org.

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