Renowned economist Peter Schiff on Wednesday called Treasury Secretary Scott Bessent‘s remarks during an interview about old gold and silver certificates “misinformed,” questioning the secretary’s understanding of U.S. currency history.
Schiff Questions Fort Knox Assurances
In a post on X, Schiff said Bessent incorrectly suggested that holders of old gold and silver certificates could still redeem them for the underlying precious metals.
He added that the U.S. gold certificates have not been redeemable for gold since 1933, while redemption of silver certificates ended in 1968.
“If Bessent is this ignorant about the history and status of U.S. currency, why should we trust his assurances about the gold supposedly held at Fort Knox,” Schiff said.
Bessent Discusses Gold, Silver And Fiat Currency
Bessent made the comments during a Fox interview in which he walked through the evolution of U.S. currency from gold- and silver-backed certificates to the modern fiat system.
While displaying historical banknotes, Bessent said that any outstanding gold or silver certificates could be redeemed for the underlying metal held at Fort Knox.
The U.S. ended the domestic redemption of gold certificates in 1933 after President Franklin D. Roosevelt suspended the convertibility of paper currency into gold, while redemption of silver certificates for physical silver ended in 1968, though both remain legal tender at their face value.
Bessent added that although he had not personally visited the depository, members of his staff and the U.S. Treasurer had, and that the nation’s gold reserves remained intact.
The Treasury Secretary’s office did not immediately respond to Benzinga’s request for clarification regarding Bessent’s comments.
Fort Knox Remains A Flashpoint
Fort Knox has long been at the center of speculation over the status of the U.S. gold reserves, despite repeated assurances from government officials that the bullion remains securely stored.
Bessent said that the U.S. holds the world’s largest gold stockpile, valued at more than $1 trillion at current market prices.
According to the European Central Bank’s June report, gold accounted for 27% of global official reserves at the end of 2025, surpassing U.S. Treasury holdings at 22% and the euro at 15%.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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