Hi angers, you are quite right - it would be very strange indeed...

Hi angers, you are quite right - it would be very strange indeed if the gold is not audited at least once per year. It is normal practice for business and government organisations to conduct an annual audit of their assets to confirm that their book or theoretical asset holdings and valuations are correct. One of the primary reasons for this is to deter theft. If there are no checks in place, the temptation to at least pilfer, and even steal on a large scale, would soon see the holdings start to diminish.

Although the question as to whether the gold is actually there is somewhat academic at this stage, if it were to transpire that the gold is NOT there, it's not hard to imagine the panic and the probable chain reaction which might follow, as other countries are forced to publicly audit their gold holdings and disclose their shortages. Then we might really see the real value of gold (and gold miners!).

Mike