Inside The Bank Of England's Gold Vault

Tyler Durden's picture

For those who think any documented presentation of the physical gold held by the world's oldest central bank usually takes place on a movie set in Burbank, CA here is a video featuring University of Nottingham's chemistry professor Professor Martyn Poliakoff (of all people) from within the bowels of the world's second largest gold repository supposedly disproving this (whose comment "one's first reaction is that it can't possibly be real" may be far more accurate than he can possibly imagine). Why the BOE would change its long held tradition of keeping its gold miles away from the public's eye (very much the same way Bob Pisani's dramatic descent into the GLD vault was a straight-to-DVD B-grade thriller) is anyone's guess, especially now that Goldman is about to take the helm of this most venerable of money-printing institutions. But we are delighted they have: we are confident with this precedent set, that the New York Fed will promptly grant some US chemistry professor the right to inspect and "document" the hundreds of tons of flood-resistant gold it too holds safely 80 feet underground, it not a member of the German parliament of course. Finally, if anyone can see Bundesbank's gold bars, please raise your hand.

 

h/t hockey

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hedgeless_horseman's picture

 

 

But if our money was still backed by gold, then our bankers could not print as much as they want.  How then could they fund our governments' spending sprees without the inflation tax? 

Want to understand what is really going on?  Buy and read The Creature From Jekyll Island, 5th Edition.

EnslavethechildrenforBen's picture

No wonder there's no fucking money in the economy. It's all there on those shelves.

If you were to divide the entire worlds real estate by the number of ounces of gold in existance, each ounce of Gold would be worth $250,000.00

francis_sawyer's picture

Until those bars are verified by a committee consisting of:

~~~

- Bill Nye the Science Guy

- The professor from the 'She Blinded Me With Science' video

- The professor from Gilligan's Island

I'll retain my skepticism...

Muppet Pimp's picture

I know what is really going on there but frankly even in the spirit of truth cannot divulge it in this forum.  THINK!

francis_sawyer's picture

Hey ~ Can we get a new video with the birdbrain standing next to this pile?...

~~~

http://www.zerohedge.com/news/2012-12-06/visualizing-us-debt

Muppet Pimp's picture

thanks for the compliment francis

Mr Lennon Hendrix's picture

Tungsten gold vault, bitchez.  That is what I know.

Imagine China's surprise when 4 years ago a large shipment of gold came into their harbour that was actually gold.  They must have thought, "Well, as long as we keep getting gold then we will let Bernanke print away."  Then they thought, "The moment we get a shipment of tungsten the party's over." 

Four long years later they are still getting shipments of gold.  But all is well that ends well, and Jim Rogers, Marc Faber, and likely many of the Rotheschilde clan have connections in the China Parliment that will allow their families to live comfortably for the next 100 years until they create their next paradise....

Africa 2112?

Muppet Pimp's picture

I am quite certain they....no sorry cannot say it.

killallthefiat's picture

Looks like chocolate?  I'll bet it tastes like it too!

Supernova Born's picture

Like a traveling art exhibit.

Just stopping by on its way to a limited engagement at the Bundesbank.

TwoShortPlanks's picture

Call me sceptical, call me a conspiracy buff, call me crazy....but some of that shit looked painted to me. I mean, how the fuck is Einstein gonna know.

Perhaps I'm still just a little upset over my boating accident.

TwoShortPlanks's picture

THEY'VE GIVEN ME two bars to look at. Yeah, they're the real ones, the rest are painted cardboard symbolizing the ones out on lease. The list of leasee names are written down here,,,somewhere?!

Ginsengbull's picture

And the meek shall inherit the earth.

onthesquare's picture

The stacks on the shelves are on top of each other so the numbers are not visible.  Gold being soft and the bottom bar, stamped with 3 or 4 bars on top may damage the serial number.  To look for a specific bar would require the moving of the bars on top of it.  Not a smart way to stock.  Each shelf has 6 tons of gold on it and the wood shelving holds one ton with no warping over time.

The professors bars may be real but this display just seems like a strange way to store something so heavy.  I dive, using lead not gold for weight, and if that was a chunk of lead then you could barely move it.  The assistant is holding his block too easily.

Just saying...maybe real and may not IDGAF

I don't need to believe it.

BaBaBouy's picture

Veeeery Interestink...

Vy Do I Zeem Tsu Szmell Zee Tungsten In Zis Vault?

Muppet Pimp's picture

Keep thinking.....Zoom back out from where you are and reconsider your assumptions.

The Shootist's picture

Is the hair a prerequisite for being considered a wacko crazy scientist?

Ginsengbull's picture

For Einstein, every day was a bad hair day.

Transformer's picture

Did anyone else stop the video at various points and try and cound the number of standing shelves.

I came up with 7 or 8 rows, not sure, 16 shelves deep, with 6 levels per shelve.  That would be 768 tonnes in that room.  And what does that mean?

It was also possible to see the serial number of one of those bars.   Whose gonna go look at the list and tell us who it belongs to?

_underscore's picture

If it's the same thing as I'm thinking MP, I don't know, but the only aspect of the film that was interesting was that is was made.

 How many requests for access do you think the BoE gets for vault 'viewings' & the like? It's probably hundreds a year. So, just now, they let a little old professor of chemistry(?)/whatever in to do a short exposition on gold - just like that? The commentary also mentions about the 'gold never leaving the vault' even (if the rightful owner wanted it back for some reason..?) for transactions & the oldest bar having been there since 1916.

 

cranky-old-geezer's picture

 

 

The commentary also mentions about the 'gold never leaving the vault'

You stumbled across the most important point here, gold never leaving the vault.

That gold is meaningless vis a vis the currency.  There's no connection at all.  It's there to create confidence in the currency, but it's false confidence since there's no legal connection to the currency.  It might be on the asset side of the balance sheet to offset currency on the liability side, but there's no real connection between them.  So it's just a confidence game.  A con. Designed to fool people.

Since there's no real connection between them, gold in that vault can be used for other purposes.  It can be leased and sold, and it doesn't affect the currency one bit.

I and a few others believe BRICS might introduce a gold and silver redeemable currency.  "redeemable" is the key.  There's a legal connection between gold and silver held in reserve and the currency.  The curency can be exchanged for some of that gold and silver.  Gold and silver backing the currency must be kept available.  It can't be leased out nor sold.

But if BRICS introduces a gold and silver backed currency, it's meaningless since there's no redeemability, no real connection between them.  It's just another confidence game.  Another con.

_underscore's picture

Some good points CoG.  I saw this 'accidental' audit though, more as a 'my dick's bigger than yours' contest behind the bicycle sheds, just in case the big swinging gold BRIC dick was ever pointed in anger.

 Even if gold is made redeemable against currency, or gold itself is used as currency or neither takes place, the atavistic idea of 'treasure', constant for 10K years or more, remains.

 

drawho's picture

I estimate that what is shown is 480 tons,

Shelf is 5 high, length is 16 stacks, and there are 6 rows.

5x16x6=480 Tons

Each shelf has 72 bars at 28lbs=2016lb or one ton.

Very small amount.

gold-is-not-dead's picture

Yup, and it's all gold plated! :)

bank guy in Brussels's picture

Not sure about that figure

About 5 billion ounces of gold in the world ... 160,000 metric tonnes, each metric tonne around 32,000 troy ounces

All 'assets' in the world of any and every type, are estimated at USD 300 trillion in value (4x global GDP) ...

But half of that 'wealth' is paper, 150 trillion in interest-paying debt instruments, ha! as Bill Gross estimated recently ... 40 trillion or so in stocks ... then other business equity, capital investments, other stuff, my used car ...

So be generous and say 80 trillion global real estate ... 5 billion ounces of gold ... about 16,000 in real estate per ounce in gold

Very roughly of course

EnslavethechildrenforBen's picture

That would bring Gold in at roughly 90% off. Hell of a Buy signal :)

 

The Swedish Chef's picture

Wrong. Real estate would be worth 5% of current valuation. 

Carp Flounderson's picture

If you divide the entire world's real estate by the number of used condoms in existance, each used condom would be worth $1500.  I assume you're a buyer?  You can have mine for a friend price of $100?

EnslavethechildrenforBen's picture

I am willing to buy your 100% pure Gold condoms from you as long as you don't show me a picture of what's left of your dick

Stock Tips Investment's picture

Indeed, the world's central banks have done a lousy job, especially in recent years. But sooner or later, the economy will adjust and the prices of goods and services seek a more logical relationship. What will be the price of gold at that time?. You will not want to know.

Tango in the Blight's picture

On those shelves and on the bottom of lakes.

Dre4dwolf's picture

I wouldn't trade a house for 1 oz of gold, thats for sure.

It would have to be atleast 50 Oz ~ 300 Oz depending on the location of the home.

 

Gasoline should cost 1/10th oz of silver per Gal (pretty much does).

I would personally prefer silver as a currency, because its scarce enough to retain value, but no scarce that its impossible to use.

Its very easy to lose 1/10th an oz of gold (its very small), an Oz of Silver is liek 1/100 oz of Gold sorta (which would be freaking small as shit, too small to use as a practical currency for common day to day transactions).

 

The entire point of having a gold-standard is nullified if you store the gold in banks, because bankers can't be trusted, the whole point of running a bank is to be able to rob it at will by printing more receipts for gold than gold in the vaults ,  bankers bank on you not withdrawing your gold, ever , they insure you dont by making your transactions as convenient as possible, (credit cards, electronic funds transfers and IOU'S/checks.

Today's monetary system is RAPID , but its junk because in the end the money is controlled by complete morons (bankers and politicians).

If you are writing a check, its the same as writing an IOU, that promises to pay you another IOU, that promises to pay you another IOU that is not re-deemable by law.

So, really, in the end your trading defaulted debt notes, which is pretty much the most worthless piece of paper you can get.

People only take them because they are brain-washed to from birth, if people were presented with a choice, o/c they would pick the real currency, its just that the majority of the population is never presented with the choice and they are too stupid to realize they are being robbed blind ^^, which plays out in the favor of people who are in the position to capitalize on it.

DeltaCharlie's picture

That's a lot of gold in storage for a barbarous relic!

new game's picture

it all seems quite stupid and it is all because humans can't trusted. hey fuck face benjy. i am talking to you and about 536 other assholes that are all fucking us over as we chat.....print me some money so i don't have to toil-eh you mfer!

 

e-recep's picture

let's remember what roubini said on december 14, 2009 : "the barbarous relic gold is going to tank."  (gold was 1120 us$/oz back then.)

 

Insideher Trading's picture

I will be using this approach as a pick-up line during my next foray into the bay scene.

Great ice breaker.

FreeSlave's picture

wat kind of video you expect to get from this russian jew (from wikipedia) professor? he is here to protect their zio-ponzi

Tom Green Swedish's picture

This backed by gold thing makes no sense. Money is always backed by something. At this point our money is backed by gold at 1730 dollars an ounce. Same price as all the rest of the currencies at the time being if you trade in them.  The fluctations in currency pairs is what makes the price of gold go up or down. It's called inflation, and inflation exists because the price of things go up in prices because money supply. And in case you haven't noticed we have the lowest inflation in the world at 1.4 percent.  It is quite obvious gold is in a tremedous bubble of which no one can account for.  It's all in computer money. They are trying to crack a code. If there was no inflation we would still be buying lunch for 20 cents. Does this make any cents to you?  This is not 1932 anymore   Stop being stupid.

 

If people are good only because they fear punishment, and hope for reward, then we are a sorry lot indeed. The difference between stupidity and genius is that genius has its limits. Any man who reads too much and uses his own brain too little falls into lazy habits of thinking. Intellectuals solve problems, geniuses prevent them. God does not play dice. Technological progress is like an axe in the hands of a pathological criminal.

falak pema's picture

that looks like tungsten to me, with chinese paint on it.

EnslavethechildrenforBen's picture

Note that they were not allowed to choose the bars at random, and did not drill into the bars...

imaginalis's picture

And we he didn't see the other rooms. The ones with tumble weeds blowing around

onthesquare's picture

The room looked very clean with no smell.  The wood shelves would give off an odour over time as would the paint.  Anything organic would smell. 

Egg head professors are the most naive people in the world.  Take one drinking sometime and find out how gulable they are.

bank guy in Brussels's picture

Maybe it's moon gold in the vault

There are even videos by these American government guys who say they landed on the moon 40+ years ago using a computer with less power than my pocket calculator

They claim it has nothing to do with the semi-secret movie studio the CIA ran for several decades in Laurel Canyon, California

A good version of the 'original NASA moon landing tape' is from the Onion - lots of coarse vulgar language, very funny

'Can you believe it? We are on the f-cking moon!'

http://www.youtube.com/watch?v=dIkHLO93lCA

Real Estate Geek's picture

Riddle me this, Bank Guy:  if the moon landings were a hoax, then why didn't the Soviets win the propaganda war by exposing the fraud and humiliating the Americans?

Changing topics now.  I've read all of the NASA biographies, and one funny story relates to how NASA's budget was coming under pressure even before Apollo 11 launched.  Reportedly, Mike Collins jokingly suggested that Armstrong and Aldrin could solve the budget problems by taking a bag of gold dust down to the surface and sprinkling it on the moon rocks they brought back . . .