THE WORLD’S STORE OF GOLD
BRITAIN’S SHARE OF TOTAL. So much is heard of the enormous quantities of bullion lying in the vaults of .the United States that some people think that New York has now possession of the world s whole supply of gold. This, however, is not the case. So far as Britain is concerned, ske has in that country roughly the same amount of gold as in 1913, that is, about £160,000,000. Before the war the Bank of England held about £40,000,000 of this total, while the remainder was divided between the other, hanks and the general public. To-day, however, practically no gold is in circulation, hut, although no actual hoarding takes place, it is probable that the number of sovereigns held by various people as souvenirs amounts to several millions. The other hundred and fifty odd millions are safely locked up in the Bank of England. The world’s stock of gold coin and bullion (exclusive of plate and jewellery) is some £2,000,000,000. Of this total, the United States of America holds £800,000,000, compared with a pre-war total of £300,000,000. France has £220,000,000, and it is surprising to know that such a comparatively poor country as Spain ranks fourth in the world with a holding of more than £IOQ,QQO,OOO. Germany has about £22,000,000.
It is illegal to export gold from England without permission. Permits, however, are issued for the re-export of gold sent there from abroad, and London acts as the world’s clearing house for vast quantities of bullion. The world’s gold production last year was £27,000,000, of which total more than half came from the Transvaal. The great bulk of this passed through London, and shipments averaged about £1,000,000 weekly. The price at which it is sold is fixed every morning at 11.15, when the bullion brokers meet at the famous banking house of Rothschilds. This price fluctuates according to demand and supply and in sympathy with the rate of exchange on New York. Gold can be coined in the. United States into gold dollars, so, if the dollar rises in value, gold rises also. The metallic value of -a sovereign is to-day about £1 2s 6d. 1
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Hawera Star, Volume XLVIII, 29 October 1924, Page 8
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362THE WORLD’S STORE OF GOLD Hawera Star, Volume XLVIII, 29 October 1924, Page 8
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