Friday, February 3, 2012

England Has Gold...Don't We?

Here is a report in the Daily Mail today showing Englands hoard of gold booty stacked in a disused World War Two bomb shelter directly under the Bank of England. Actually, it was a canteen. Apparently, those pictures on the wall were for decoration during that time.

The Bank of England gold vault

The reporter states the gold is worth a  whopping £156billion and the whole stash contains around 4,600 tons.

The article does state "Some is deposited by foreign governments as well as our own. Different shapes and marks distinguish the varying sources of the wealth". So there is an acknowledgment of owners other than England, but to get all excited that this 4,600 tons is somehow going to help England out of this financial crisis is wildly optomistic one would have to say.

We have all heard the saying "possession is 9/10ths of the law" but the United Kingdom of Great Britain and Northern Ireland officially only owns 310.3 tons of the yellow metal. This according to the World Gold Council. So England can get a little excited, but 310 tons doesn't really cut it in international finance.

Unless, other countries holdings are not what they think they are and the Bank of England could make a grab for it in times of distress?

Perhaps we now see how smart Venezuela was to expatriate the gold that was theirs from this very vault. All good so far from the Bank, but what if other countries tried and what if it wasn't all there, or maybe encumbered.

I just tend to think the journalist got a bit excited with all the gold around in kinda claiming it was England's

The actual owners would hope so too.

Gold in New Zealand dollars: $2107.59 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $41.14 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)

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