Hurricane's aftermath gives NY Fed a rationale for suspending access to gold vault

IMG Auteur
Published : November 06th, 2012
429 words - Reading time : 1 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

 

 

 

 

Did all those gold swap documents get wet too?

* * *

About That Gold Stored in Flood-Prone Lower Manhattan

By Nick Summers
Bloomberg News
via Bloomberg Business Week
Sunday, November 4, 2012

http://www.businessweek.com/articles/2012-11-...old-stored-i...

As New York City continues to dry out in the aftermath of Hurricane Sandy, the financial world is reconsidering just how smart it is to place critical pieces of infrastructure in flood-prone areas. Citigroup's waterlogged building at 111 Wall St. will be unusable for several weeks, and two critical Verizon Communications facilities suffered extensive flooding during the storm.

At least the material at those sites is replaceable. What about the nearly 15 million pounds of gold bricks stored at the New York Fed?

They're safe -- and will be, in theory, should floodwaters return. The bullion is so heavy that its vault sits 80 feet below street level, and 50 feet below sea level, on the bedrock beneath Manhattan. Though the bank's fortress-like building is located far downtown, close to where other financial institutions sustained water damage, the property at 33 Liberty St. sits in the city's evacuation zone C, where residents are told to expect storm-surge flooding only from major -- Category 3 or 4 -- hurricanes that hit the New York harbor.



The New York Fed is tight-lipped about how it secures the planet's largest concentration of gold, referring questions on the subject to a brochure --

http://www.newyorkfed.org/education/addpub/goldvault.pdf

-- published on its website. The pamphlet claims that the vault is protected by an "airtight and watertight seal" created by lowering a 90-ton steel cylinder just three-eighths of an inch into a 140-ton steel-and-concrete frame -- an effect "similar to pushing a cork down into a bottle."

Other security measures include closed-circuit video feeds, firearms training for guards, and the weight of the gold itself. At 27 pounds per bar, it's hard to smuggle one out in a pocket. "The bank's security arrangements are so trusted by depositors that few have ever asked to examine their gold," the New York Fed writes.

That, obviously, has helped fuel a string of conspiracy theories -- the gold isn't really there, isn't really gold, or is otherwise suspect. The Los Angeles Times reported in August that the federal government was conducting its first audit of the bullion it stores beneath Liberty Street, drilling tiny holes into selected ingots and analyzing the metal.

Ordinarily you'd be able to eye the gold bars yourself. Some 25,000 visitors tour the bank's vault each year. Those visits, the bank says, have been canceled indefinitely "due to the aftermath of Hurricane Sandy."

 

 

<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Chris Powell is the secretary of the Gold Anti-Trust Action Committee (GATA) which has been organized to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Nice Rally, but Can Gold Sustain It?
17:10The Recusant
Gold can sustain higher values if the fears are maintained. As long as fear of war, economic problems, or political upheavals are present, gold pri...
The Demise Of The Dollar As We Know It: “A Break Is Coming… On A Wo...
16:59The Recusant
We must return to a precious metals based monetary standard. China's move to use a gold-backed Yuan for international oil trade is a move in that d...
Governments Begin Testing Cryptocurrencies As Cash Use Plummets
16:42The Recusant
"When a government takes over a people’s economic life it becomes absolute, and when it has become absolute it destroys the arts, the minds, the li...
Top Ten Reasons I Buy Gold Silver [#7] - These Assets Come With a ...
21 Sepvictoriashores1
HI Jeff I have read your articles with a lot of interest in your feelings with the future of Gold and Silver. I'm 75 years of age and have ...
What Is the Correct Amount of Money?
20 Sepgfs5431
If money is the heart of the economy, then the economies of the world are running with diseased hearts. Keynesians and other monetary intervention...
Pushback
20 SepGypsy
James, you're getting more difficult to read. As a Deplorable, I realize my under-education leaves me at a disadvantage when faced against the Mer...
Pushback
18 Sepdennyc3
If a university professor has been on the job for more than five years without venturing out into the world there's usually nothing to learn here. ...
Rude Awakening for the US in January? No, Just More Alarmist BS Fro...
18 SepDRGEORGE
The world & the US $ have been on the brink for 10 years (or more). In 2008 it nearly happened but giving the 1% a stack of money saved the day. It...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS