The Largest Gold Vault in the World
The largest depository of gold in the world may not be where you think.
Gold is one of the most prized elements on the planet. It has been used throughout history as a sign of power and wealth, adorned in jewelry, and even used in practical applications that use its anti-corrosive properties. But since there isn’t much of it sitting in the ground, it has become a rare commodity and must be held safe and secure. There is one place where the most gold on Earth sits.
If you had to guess where that place was, your first choice might be the famous Fort Knox in Fort Knox, Kentucky. That gold depository is reported as being huge, but there hasn’t been an official audit of the gold there since 1974 when it was only viewed by congressional members and press members.
There is another gold vault that is undoubtedly bigger and has been verified, and it sits in a place you might not think would be a usual site to store gold. On the southern tip of Manhattan in New York City, buried five stories underneath the city streets, is the vault of the Federal Reserve Bank of New York, the largest gold vault in the world.
As of 2024, its vault held approximately 507,000 gold bars weighing 6,331 metric tons and worth around $582 billion at today’s market gold prices. By comparison, Fort Knox is estimated to hold approximately $388 billion in gold at market prices. However, much of the gold that resides in the New York vault doesn’t belong to the U.S. government.
Only about 2% of the gold in the vault is the property of the U.S., about 5% of the U.S. gold reserves held by the U.S. Treasury. Currently, the U.S. has over 13 million fine troy ounces of gold in the vault. The United States uses an official book value of $42.2222 per troy ounce for its gold, a price set by law in 1973 that does not fluctuate with the market price of gold. This price was implemented to stabilize the value of the dollar in the international monetary system and reduce volatility in government accounts. The book value for U.S. gold in the New York vault is currently $564 million, a tremendous amount less than the current market value.
The rest of the gold in the New York Federal Reserve Bank vault belongs to foreign governments, other central banks, and official international organizations, making it the world’s largest known depository of monetary gold. These entities are allowed to store their gold for free but are charged a handling fee when gold enters or leaves the vault or changes ownership by moving to another compartment. It is not known what the handling fee is today, but in 2008, it was reported that it cost only $1.75 to withdraw or deposit a bar of gold.
The Federal Reserve building looks like any other building in the district, but the windows from the first to third floors are closed with iron bars. Security is understandably tight, and armed guards patrol the outside of the facility constantly. The vault is 80 feet underground and 50 feet below sea level. It was placed on bedrock, and it’s surrounded by rock on each of its sides. The walls of the vault are made of thick, steel-reinforced concrete.
The only way to get into the vault is by going through a passage that is a 90-ton steel cylinder, which is also encased in 140 tons of concrete and steel. When the area is closed, it is airtight, and four steel rods lock into holes in the cylinder. Once that happens, it can’t be opened until the next business day.
If that wasn’t enough, the vault is monitored inside and out, 24 hours a day, by security cameras and motion sensors. Three people must be present anytime gold is moved or a compartment is opened in the vault. Two members of the New York Fed gold vault staff and one employee from the New York Fed internal audit staff are responsible for any movement of gold and if anything needs to be done in the vault. Nothing can go on without all three of them being present.
When gold comes into the vault, it is moved from the street to the basement by elevator, the bars are weighed, and all markings are inspected to ensure that whatever comes in leaves in the same condition. The bars are then moved to a compartment in the vault. Overall, there are 122 compartments, and each compartment belongs to a single account holder. After the gold has been deposited, the compartments are padlocked, two combination locks are added, and finally, the compartment is fixed with an auditor’s seal.
Gold storage at the New York Fed began after World War II when countries sought a safe haven for their gold reserves. Its peak was in 1973 when the vault held over 12,000 tons of gold, almost double its current size. The gold bars were the well-known rectangular shape before 1986, but now the bars are cast in the international standard of a trapezoid shape. It’s interesting to note that the bars are not 100% gold because they would be too “soft” or malleable and wouldn’t keep their shape when stacked or stored. They contain trace amounts of at least one other metal to help them keep their shape.
So, if you’re looking to store vast gold deposits, I have bad news. The New York Reserve Bank doesn’t store gold for private individuals or companies. You’ll have to find somewhere else, but you could possibly get a tour of the vault if you sign up months in advance and are part of a school group.
Sources: Federal Reserve Bank (1), Federal Reserve Bank (2), St. Louis Fed (1), St. Louis Fed (2), GovMint, Coin World, ABC News