Exclusive Access to the Bank of England's Hidden Gold Vaults
Sky News has been granted an unprecedented opportunity to explore the Bank of England's secret gold vaults, located deep beneath the heart of London's financial district. This exclusive visit unveils one of the most secure and least visited places in central London, where over 5,000 tonnes of gold are stored, making it the largest single deposit of gold in the world outside of the Federal Reserve Bank of New York.
The Underground City of Gold
Beneath the bustling streets of London lies a hidden city within a city. Approximately 40% of the Bank of England's floor space is underground, with the gold vaults at its core. These 12 vast vaults hold thousands of gold bars, each weighing between 12 and 13 kilograms. The security measures to access this area are extreme, requiring visitors to pass through multiple gates, surrender phones and money, and follow a maze-like path that remains confidential.
London remains the global capital for physical gold trading, thanks to its historical significance. More than 60 central banks from around the world store their gold here to facilitate trade. Interestingly, the Bank of England itself owns only two bars for display, with the vast majority belonging to other nations. This underscores London's role as a trusted custodian in the international gold market.
Curiosities and Historical Artifacts
During the tour, Sky News was shown gold bars with unique histories, including those recovered from shipwrecks and explosions, still bearing visible scars. Some bars feature the Soviet hammer and sickle, though Nazi-era bars were melted down years ago. Most gold trading occurs without the bars ever leaving the vaults; each bar has a serial number or barcode, and ownership changes simply by reassigning these codes.
The Trump Effect and Market Dynamics
In early 2025, a phenomenon known as the Trump effect caused a spike in gold prices in New York due to fears of tariffs on precious metals. This led investors to rapidly move gold from London to the U.S., often via Switzerland for remelting. The Bank of England struggled to meet this demand, as it has only one gate for bullion deliveries. However, prices eventually equalized, and gold began flowing back into the vaults.
Governor Andrew Bailey highlighted gold's enduring importance as a safe-haven asset during times of global uncertainty. He noted that recent events, including political tensions and economic policies, have reinforced gold's value. This aligns with London's historical stability, which continues to attract global investors.
Historical Decisions and Current Implications
Only about 300 tonnes of the gold in the vaults belong to the United Kingdom. In the late 1990s, Chancellor Gordon Brown sold over half of Britain's gold reserves when prices were around $275 per ounce. Today, with gold prices near $5,000, this decision has resulted in a notional loss of approximately $47 billion. Governor Bailey contextualized this by explaining debates over the utility of gold reserves versus other assets.
Political and Legal Challenges
London's gold vaults are no stranger to controversy. For instance, the Venezuelan government has demanded the repatriation of its gold stored at the Bank, leading to legal battles. Such episodes test the trust in London as a secure location for gold, especially after G7 nations seized Russian assets following the invasion of Ukraine. Experts like Adrian Ash from Bullionvault argue that London's long history of political and legal stability strengthens its position as the world's central hub for physical gold.
In summary, the Bank of England's gold vaults represent an extraordinary underground network of wealth and history. Their role in global finance, combined with London's enduring trustworthiness, ensures that this hidden treasure remains a cornerstone of the world economy.
