What's Actually in the Bank of England's Vaults?

Gold Bars, Not Banknotes

Contrary to popular imagination, the Bank of England does not store physical cash (banknotes and coins) in its Threadneedle Street vaults. Here's what's actually down there:

What IS in the Vaults

• ~400,000 gold bars (~4,600 tonnes)
• Valued at ~£300+ billion (2024 prices)
• Owned by: UK Treasury (majority), other central banks (custody), LBMA members
• Second-largest gold repository globally (after NY Fed)

What ISN'T in the Vaults

• Circulating banknotes & coins – Produced by Bank of England Printing Works (Debden, Essex) and Royal Mint (Llantrisant, Wales), distributed via commercial banks.
• Digital reserves – Exist as electronic entries in the Real-Time Gross Settlement (RTGS) system.

How Money Creation Actually Works

1. BoE sets Bank Rate → influences commercial bank lending.
2. Commercial banks create broad money (deposits) when they lend.
3. BoE creates central bank reserves electronically to settle interbank payments.
4. Quantitative Easing (QE): BoE buys gilts/corporate bonds → credits seller's bank with new reserves.

Visiting the Gold

The Bank of England Museum (free entry) displays a 13 kg (400 oz) "Good Delivery" bar you can lift—behind glass. The real vaults are not publicly accessible.

TL;DR: The BoE guards the nation's gold, not its cash. Cash is printed/minted elsewhere; money is mostly digital.