Gold Bullion Vault - Periodic Table of Videos

TL;DR

A tour of the Bank of England's gold vault, showcasing the impressive amount of gold stored and its significance as a stable asset.

Transcript

In some ways, I think it's quite disappointing seeing these bars because the gold is an exciting element it has interesting chemistry and it's just sitting here doing nothing. It's enormously impressive, but it's a bit sad rather like a mausoleum where the the dead gold is sitting, waiting for people to remember it. It could be doing exciting react... Read More

Key Insights

• 🏅 The Bank of England's gold vault contains an impressive amount of gold, worth 197 billion pounds according to their annual report.
• 👻 Gold's unreactive nature allows it to maintain its appearance for long periods, making it a lasting store of value.
• 🏦 Central banks store gold as reserves due to its stable value compared to currencies.
• 🤢 Gold bars are traded based on their unique registration number, without physically transferring the bars.
• 🦿 All the gold ever mined could be compacted into a block easily fitting under the Eiffel Tower's legs.
• 🤢 The weight of the gold bars is substantial, with each bar weighing around 12.4 kilos or 28 pounds.
• 🥇 The tour highlights the impressive security measures in place to protect the gold in the vault.

Questions & Answers

Q: Why do central banks store their reserves in gold?

Central banks store gold as reserves because its value is more stable compared to currencies, which can fluctuate in value.

Q: How is gold traded without physically moving the bars?

When gold is bought or traded, only the bar's unique registration number is transferred from the seller's account to the buyer's account, keeping the physical gold in the vault.

Q: Why does gold appear shiny and warm?

Gold's color gives it a warm appearance, which may have a psychological effect. Metals like gold don't have a smell, and the thick walls of the vault keep it quiet.

Q: How much gold does the Bank of England hold?

The Bank of England holds about 310 tonnes of gold in its reserves, but the vault also stores gold owned by individuals and institutions.

Summary & Key Takeaways

• The Bank of England's gold vault contains an impressive amount of gold, with each shelf holding a tonne worth 35 million pounds.

• The vault stores gold reserves for various central banks due to the stable value of gold compared to currencies.

• The gold bars in the vault are unreactive and have maintained their appearance since the early 1900s.