The Bank Of England has a long history and a very important role in the financial system. can you say a little more about its role with regards to gold?

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Rinku Das (Hazra)
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The Bank Of England has a long history and a very important role in the financial system. can you say a little more about its role with regards to gold?

Gold has been an important aspect of the Bank’s role since we were founded in 1694 (we are celebrating our 325th birthday this year, alongside the centenary of the first London Gold Price), reflecting gold’s significance within official foreign exchange reserves. The Bank opened a purpose-built London vault in 1697 in response to the first significant gold rush. This saw an influx of gold from Brazil to London. The Bank’s ‘bullion warehouse’ served the entire European market, and the subsequent gold rushes in California, Australia and South Africa led to the storage of even more gold in the Bank’s vaults.

Today (a sunny day in early September 2019), we hold around 400,000 gold bars in our vaults, currently worth approximately £200 billion, making up 15% of official declared gold reserves globally. We are the largest gold custodian in the UK – we hold over 65% of the gold in London.

Today (a sunny day in early September 2019), we hold around 400,000 gold bars in our vaults, currently worth approximately £200 billion, making up 15% of official declared gold reserves globally. We are the largest gold custodian in the UK – we hold over 65% of the gold in London. [LMBA Resource]