Federal Reserve Chair Keeps Mum on Removal of Gold by Foreign Nations from the United States.

Amidst concerns about a weaponized financial system, several nations are indicating plans to repatriate their gold and other assets from the U.S. following unprecedented Western sanctions on Russia due to the Ukraine invasion. A 2023 Invesco survey reveals that a significant percentage of central banks are worried about the freezing of nearly half of Russia's $650 billion gold and forex reserves by the U.S. and its allies. In response, some countries have discreetly repatriated their gold from London, with 68% of surveyed banks opting to keep their gold reserves within their own borders, up from 50% in 2020.

This move to retrieve gold from foreign countries aligns with a trend initiated in 1971 when the U.S. detached the dollar from gold. The Federal Reserve's custodial gold services have dwindled from approximately 13,000 tons to just over 6,000 tons.

Amid geopolitical tensions, Congressman Alex Mooney is demanding transparency from the Federal Reserve regarding the amount of foreign gold removed from U.S. shores. However, Fed Chairman Jerome Powell, in a letter responding to Mooney's inquiries, provided evasive non-answers, refusing to disclose crucial information about the U.S. central bank's gold holdings. This lack of transparency raises questions, especially as central banks worldwide routinely disclosed such information in the past.

The Federal Reserve Bank of New York's historical gold holdings have fluctuated, with recent updates indicating an increase to 507,000 gold bars, weighing 6,331 metric tons in 2024. Speculation arises about whether the recent uptick in gold holdings is related to the custody of Ukraine's gold, possibly offsetting withdrawals from other nations.

Chris Powell, Secretary-Treasurer of the Gold Anti-Trust Action Committee, emphasizes the need for the Federal Reserve to provide answers regarding international gold flows. He questions what the Fed knows that it is keeping from the public, raising concerns about potential financial mismanagement by the U.S. government. Stefan Gleason, CEO of online bullion dealer Money Metals, applauds Congressman Mooney for persistently seeking clarity on gold-related activities, noting the difficulty in obtaining straightforward answers from government entities.