Why does the us government stockpile gold

A country's economy is dependent upon its supply of gold: The economy is not reliant on the resourcefulness of its people and businesses. Countries without any gold are at a competitive disadvantage.

It was the world's second-largest gold-mining country after Australia. Most gold mining in the U. Countries fixate on keeping their gold: Countries that are worried about gold tend to ignore the more important task of improving the business climate. During the Great Depression, the Federal Reserve raised interest rates.

It wanted to make dollars more valuable and prevent people from demanding gold, but it should have been lowering rates to stimulate the economy. Actions to protect gold reserves cause significant fluctuations in the economy: Between and , the U. Yale University. Accessed July 1, Iowa State University.

Congressional Research Service. Federal Reserve History. The Living New Deal. National Mining Association. International Monetary Fund. Iowa State University Department of Economics. Federal Reserve Bank of St. National Archives and Records Administration. California Department of Parks and Recreation.

Government Accountability Office. The Federal Reserve Board. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance.

Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Table of Contents Expand. Table of Contents. Governments in Europe, including those in Great Britain and Switzerland, have sold off some of their gold in the past much of it near the bottom of the market 13 years ago.

I confess I am a gold agnostic—neither a confirmed skeptic, nor a true believer. I try to keep an open mind. I do see some value in owning it, since in the past it has often tended to do well when other assets, such as stocks and bonds, have done badly. It's not as tough as it was last year to get a refi, but that doesn't mean you should do it.

Brett Arends is an award-winning financial writer with many years experience writing about markets, economics and personal finance. He has received an individual award from the Society of American Business Editors and Writers for his financial writing, and was part of the Boston Herald team that won two others. ET By Brett Arends. Is it time to consider a refi? If they were percent pure, the bars would be too malleable to preserve their shape.

This would render them difficult to store or move. Therefore, each bar contains a small amount of at least one other metal, such as copper, silver or platinum. Tinges of color can indicate the type of alloy, however modest, from which a particular bar is composed.

For instance, traces of silver and platinum give the gold a whitish shade, copper is most often found in reddish bars, and iron produces a greenish hue. The market value of a gold bar depends on its weight, purity level, and the prevailing market price for gold.

The vault is safeguarded by a comprehensive multilayered security system, highlighted by a ton steel cylinder protecting the only entry into the vault. The nine-foot-tall cylinder is set within a ton steel-and-concrete frame that, when closed, creates an airtight and watertight seal.

Also, once closed, four steel rods are inserted into holes in the cylinder and time clocks are engaged, locking the vault until the next business day. Security is further enhanced by the massive steel-reinforced concrete walls surrounding the vault and hour monitoring of activity inside and outside the vault by security cameras, as well as the use of motion sensors when the vault is closed.

Continuous supervision by the vault control group also ensures that proper security procedures are followed at all times. Every year tens of thousands of visitors from around the world visit the gold vault as part of a free, public tour of the New York Fed.

You can register for a tour here. Gold Vault.