How does the gold in Ft. Knox relate to the currency we spend every day?

Question

I know the gold supports the currency but how does it work?

Answer 1

What used to be called the "gold standard" is no longer in effect. What gold there is that is still left at fort Knox has no barring on our currency today.

Answer 2

I don't know if there are any gold in Ft. Knox, but gold has indirect relationship to currency valuation. People hold gold because the value of gold itself doesn't change, what's changed daily is the value of gold in term of USD or some other currency. So, let's say there is massive inflation, the USD you have in your pocket now worth a lot less in terms of what you can purchase with it. But with inflation, gold price will go up and at the end, it has the same purchasing power as you did before the inflation.

Answer 3

Is any actually there? There has been no audit since the Eisenhower administration. Our currency is based on debt only and has been dropping in purchasing power steadily since the 1913 creation of the Federal Reserve. Of course, that is the plan.

Answer 4

yeah i wonder too since THERE IS NO GOLD AT FORT KNOX ANYMORE!oh they may claim it is there but its not,and they wont tell where they moved it to, but wherever it is it doesnt affect the currency since the govt just makes more paper and coins whenever they want,it was just the basis for when we used real gold as money.

Answer 5

To add to the first answer, what all countries have nowadays is called fiduciary money, that means the value is based on trust, on supply and demand. If it was all still based on gold than the exchange rates would never change.