In June 1935, the U.S. Treasury announced its intention to quickly build a gold depository on the grounds of Fort Knox, Kentucky. Its purpose was to store gold then kept in the New York City Assay Office and the Philadelphia Mint. This intent was in keeping with a policy previously announced to move gold reserves away from coastal cities to areas less vulnerable to foreign military invasion. This policy had already led to the shipment of nearly 85.7 million troy ounces (2,666 metric tons) of gold from the San Francisco Mint to the Denver Mint. The initial plans were to be completed by August and called for a 10,000-square-foot (930 m2) building costing no more than $450,000 (equivalent to $7,800,000 in 2023).
Cited were several military advantages of the location. An army attacking from the Eastern Seaboard would have to fight through the Appalachian Mountains, which were considered a reasonable impediment to military forces of the time. It was also isolated from railways and highways which would further hinder an attacking power. Even air travel to the location across the mountains was considered dangerous for a pilot unfamiliar with the territory. Finally, the Army's only completely mechanized cavalry unit was stationed at the adjacent Fort and could readily be deployed to defend the depository.
The Treasury began construction of the United States Bullion Depository in 1936 on land transferred to it from the military. The Gold Vault was completed in December of that year for $560,000 (equivalent to $9,700,000 in 2023).
The first wave of gold shipments was made semi-weekly between January 11 and June 17, 1937, and overseen by the United States Post Office Department. The gold was transported from the New York Assay Office and the Philadelphia Mint onto trains using postal trucks and municipal police escorts. In the armored train cars, postal workers were accompanied by soldiers, secret service agents, and mint guards. Decoy trains were employed. The gold was transferred from trains onto Army trucks under the protection of soldiers armed with armor-piercing bullets and machine guns. The trucks were escorted by combat cars of the 1st U.S. Cavalry Regiment to the depository. The Post Office Department billed the Treasury Department for transporting the weight of the crates and gold using the fourth-class postage rate with added insurance fees.
A total of 157.82 million troy ounces (4,909 metric tons) were moved to Fort Knox in this wave. This shipment represented 44.84% of total U.S. gold reserves, which were 351.9 million troy ounces (10,947 metric tons) at that time. It took over five months and required 39 trains consisting of 215 cars.
The building and early operation of the depository occurred at the same time total gold reserves in the United States experienced unprecedented growth. These reserves, which were 194 million troy ounces (6,019 metric tons) at the end of 1933, jumped to 503 million troy ounces (15,641 metric tons) by the end of 1939.
Factors driving this growth included the gold price revaluation (dollar devaluation) in 1934 spurring a rise in global gold production, political uncertainties in Europe causing a capital flight to the United States, and re-armament programs in Europe which increased U.S. net merchandise exports.
By far, most of the increase, 277 million troy ounces (8,620 metric tons), were the result of gold imports from abroad. This consisted of 174 million troy ounces (5,421 metric tons) out of foreign mines (mainly from South Africa), 89 million troy ounces (2,755 metric tons) out of foreign central bank reserves (mostly France and the United Kingdom), with the balance from other sources (principally private holdings in India). Only 6 million troy ounces (178 metric tons) came from gold acquired in January 1934 under the gold-buying program of Executive Order 6102 (which required individuals and institutions deliver to the government all but a small amount of their gold coin and bullion), and 26 million troy ounces (800 metric tons) from domestic production and return of scrap gold and coin after January.
By the end of 1940, total Treasury reserves stored at all locations rose to 628.4 million troy ounces (19,546 metric tons). This accounted for around 80 percent of the entire world's gold reserves. Total U.S. gold reserves stored at all locations peaked in October 1941 at 651.4 million troy ounces (20,262 metric tons) and ended the year at 649.6 million troy ounces (20,206 metric tons).
When it became clear that Congress would not fund the building of a separate facility, Macleish sought other options. On April 30, 1941, he requested of the Treasury Secretary some thousands of cubic feet at Fort Knox for the most notable items in the library. The secretary replied, offering the librarian ten cubic feet. In July, when the inventory was complete, and it had been determined that some 40,000 cubic feet would be required for the storage of all unique and irreplaceable materials of the library, the original ten cubic feet offer was raised to 60.3 cubic feet.
The building measures 105 feet (32 m) by 121 feet (37 m) and is 42 feet (13 m) above ground level. Materials used to construct the building include 16,500 cubic feet (470 m3) of granite (quarried at the North Carolina Granite Corporation Quarry Complex), 4,200 cubic yards (3,200 m3) of concrete, 750 short tons (680 metric tons) of reinforced steel and 670 short tons (610 metric tons) of structural steel. The outer wall is made of granite-lined concrete. There are guard boxes at each of the four corners of the structure. Sentry boxes are located at the entrance gate. The words "United States Depository" are inscribed over the marble front entrance. Above the inscription is the seal of the Department of the Treasury, in gold. Offices of the Officer in Charge and the Captain of the Guard open upon the entrance lobby. At the rear of the building is another entrance used for receiving bullion and supplies.
For security reasons, visitors are not allowed inside the depository grounds. There have been only three reported occasions when guests outside the Treasury Department have made inspection tours of the vault. The first was by President Franklin Roosevelt in 1943. A second inspection was made by members of the United States Congress and the news media on September 23, 1974, led by the Director of the United States Mint, Mary Brooks. The tour was in response to a conspiracy theory, circulated by Peter Beter, that elites had secretly removed the gold in the depository and that the vaults were empty. The third inspection tour was on August 21, 2017, when Kentucky Senator Mitch McConnell visited with a small group of officials and staff, including Secretary of the Treasury Steven Mnuchin. According to a tweet by Mnuchin, and an internal email by Chief of the U.S. Mint Police Dennis O'Connor, he was the first Treasury Secretary to visit the depository since John Wesley Snyder in 1948.
The 1934 London Good Delivery List, published by the London Gold Market (a precursor of the London Bullion Market Association), defined coin bars as "bars assaying 899 to 901 per mille or 9151⁄2 to 917 per mille and containing between 350 and 420 ounces of fine gold". These two different levels of fineness reflected the composition of gold coins of the day. U.S. coins produced from 1838 through 1933 were made with 90% gold alloyed with 10% copper, while U.K. crown gold coins were minted with a gold proportion of 22 parts to 24 (91+2⁄3%). These lower gold ratios contrast to many 99.9% fine gold bullion coins minted in modern times since older coins were intended for circulation while newer coins are not.
In 2011, the U.S. Treasury's full detailed schedules of gold bars were published by the U.S. House Committee on Financial Services as part of submissions for its hearing titled "Investigating the Gold: H.R. 1495, the Gold Reserve Transparency Act of 2011 and the Oversight of United States Gold Holdings". From the schedule, it can be seen that roughly 64% of the gold bars at Fort Knox have a fineness between 899 and 901, 2% have a fineness between 901.1 and 915.4, 17% have a fineness between 915.5 and 917, and 17% have a fineness greater than or equal to 995. The average fineness is 916.7.
Under the currency reforms enacted by Roosevelt, the federal government owns the gold and holds it as security for $11 billion in gold certificates issued, in book-entry form, to the Federal Reserve Banks. The Federal Reserve Banks use these certificates as a small fraction of the collateral for Federal Reserve Notes.
The term "safe as Fort Knox" has become a metaphor for safety and security in popular vernacular. As an example, 2020 Democratic Party presidential primary candidate Elizabeth Warren, when outlining in a Medium post a plan to make voting machines secure, stated "Our elections should be as secure as Fort Knox. But instead, they're less secure than your Amazon account." Samsung Knox, part of Samsung's SAFE (Samsung For Enterprise) initiative, was named after Fort Knox, connoting a sense of security.
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