Fort Knox Audit Plans Signal Growing Interest in Digital Asset Storage
A potential audit of Fort Knox's gold reserves, proposed by former President Donald Trump, could lead investors to shift their focus toward bitcoin and other digital assets, according to market analysts. The U.S. gold reserves have not undergone a complete independent audit since the 1950s, making this proposal particularly significant for financial markets - based on The Block's reporting.
The current valuation of U.S. gold reserves stands at $42.22 per ounce, a price set during the Bretton Woods era. With gold prices approaching $3,000 per ounce, updating this valuation could increase the Treasury's reserves from $11 billion to more than $750 billion, according to recent discussions reported by The Times.
Fadi Aboualfa, Head of Research at Copper, suggests that increased scrutiny of gold holdings could affect digital assets. If gold ETFs cannot prove 100% holdings, they might trade at a discount, potentially causing investors to move their assets. The paper gold market currently represents 133 times the size of physical supply, raising concerns about market stability.
Recent market developments have shown:
- Gold prices reaching $2,954 per ounce
- U.S. banks moving gold bars from London to New York
- Growing delays in gold deliveries
- Rising counterparty risks in clearing banks
However, not all analysts expect a direct flow of capital into digital assets. RedStone COO Marcin Kazmierczak points out that traditional institutions still view these asset classes differently due to their historical risk profiles. Nevertheless, he acknowledges that the situation supports bitcoin's role as a digital store of value.
Nansen Research Analyst Nicolai Sondergaard notes that bitcoin's built-in scarcity and trackable nature might appeal to investors concerned about physical gold storage verification. Meanwhile, Nexo Dispatch analyst Iliya Kalchev attributes gold's recent rally to central bank accumulation, economic uncertainty, and new U.S. tariffs, while noting that bitcoin has gained alongside as investors expand their portfolios.
The discussion about gold reserves and digital assets comes amid broader developments in U.S. cryptocurrency policy. During a recent speech at the FII PRIORITY Summit in Miami Beach, Donald Trump announced plans to support cryptocurrency market growth and reduce regulatory restrictions. This policy shift occurs as twenty U.S. states consider legislation to invest government funds in digital assets, with potential investments reaching $23 billion. Montana has advanced a bill allowing up to $50 million in state Bitcoin investments, while Arizona and Florida are exploring larger allocations of $8.7 billion and $3 billion respectively. The U.S. Bitcoin mining sector now generates $4.1 billion in annual gross product and provides more than 31,000 jobs nationwide.
