Bank of England Gold Vault
The arrangement of pallets in the Bank's vault allows them to be easily moved using a forklift.
Image provided courtesy of the Bank of England
In terms of the amount of gold held in its vaults, the Bank of England is second only to the New York Federal Reserve Bank. The system that evolved for storing gold bars at the Bank of England reflects different facets of the Bank’s history. The United Kingdom itself is not one of the largest holders of gold bullion, which may seem a little strange given that England was, thanks to Sir Isaac Newton slightly overvaluing gold in 1717, the home of the Gold Standard for the next two centuries.
Being an offshore island, with a long history of stability and its traditional role as the centre of the world gold market, the United Kingdom was perceived by many European countries as a safe place in which to store their gold. Thus, during the 20th century, gold bullion from around the world flowed into the Bank of England for safekeeping.
Only around 6% of the gold in the Bank’s vaults is held on behalf of the UK Treasury. The great majority of the approximately 400,000 bars held in the nine vaults deep below the Bank’s offices in Threadneedle Street are held on behalf of other central banks and similar institutions. A number of members of LBMA which have been granted gold account facilities at the bank can also hold gold in its vaults. This arrangement gives central banks access to the liquidity of the London gold market, allowing them to lend, sell or buy gold.
As a result, the Bank of England gold vault is a very active one and its staff have to be able to process incoming and outgoing bars quickly and efficiently. The system of using strong steel and wood pallets (shown stacked four high in the photograph), each holding 80 bars (approximately one tonne), was adopted to facilitate these processes.
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