Britain’s Gold Reserves Cracking Up

It has been discovered that some of the bars of gold held in the bank of England have been poorly made and have started to show cracks.

The 320 tonne reserved by the bank on behalf of the treasury could temporarily affect the value.

The gold showing sings of deterioration was originally imported in the 1930s and 1940s falls below the proper LGD standard.

All gold in the UK is defined by the London Good Delivery (LGD) standards laid down by the London Bullion Market Association.

A spokesman for the Bank of England has claimed the problem was purely superficial and not an issue of the gold’s purity. The affected gold would attract a lower price if it were to be sold now and the bank will have to re-refine it to bring it up to standard - will this affect the overall value of gold?

The spokesman continued,

“This is not about purity, this is about physical appearance,”

The gold held by the Bank of England is an insurance policy in case of turmoil in the world’s money markets and the reserve is currently worth around £4 billion.

CLICK HERE to keep updated with the latest news, share a comment or problems with products and services. Follow us on twitter or read more news.