Here is a sight you won’t see very often. In fact, I’m not sure this gold vault has ever been made public before.
This video shows you just some of the gold that is stored by the Bank of England. As you watch the video, you’ll get a sense of just how much is there, and how much it is worth.
Take a look.
Seeing all this gold in storage should be reassuring to all of us as owners of gold.
First, it confirms the real value of gold as a reserve currency. Central banks don’t own and store gold just because it is rare and shiny. They own it because it represents real wealth, outside of the uncertain value of fiat currencies. It’s real money, and governments know that.
This video should also reassure those people who think central banks don’t believe in the value of gold anymore and have long since sold all the gold bullion they used to store. I think this video puts that particular myth to bed. The gold is still there.
Part of the beauty of gold is that it is so valuable relative to its size and weight. You can carry a fortune in gold in the pockets of your jacket.
For me, the biggest takeaway from this video is how it confirms the value world governments place in gold. They know their fiat currencies are subject to sudden variations in value. They know their economic systems are fragile. They know the future is uncertain.
In response to this uncertainty they take out an insurance policy – they place a proportion of their wealth in gold.
And that’s the exact same kind of thinking that we, as gold owners on a smaller scale, should follow.
If governments feel the need to secure their wealth with gold, we should too.
About the author: DH Kenrick is a student of world economics and a committed gold enthusiast. Follow me on Google+
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