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Old 02-09-2005, 10:31 PM
DesertDog DesertDog is online now
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Join Date: Oct 2002
Location: Mesa, Ariz.
Posts: 3,855
Originally Posted by Triskadecamus
Most folks just hold the paper, and let the actual block of gold sit in one place, changing owners as the whim drives human markets.
Over thirty years ago I read an article about the world's largest gold repository -- not Ft. Knox, but the Federal Reserve Bank in New York. The vault there held not just U.S. gold but bullion of many countries. If China bought six million dollars worth of wheat from Canada, an order would come down and the workers would go to China's niche, stack the requisite number of bars onto a hand truck, trundle it over to Canada's niche, and unload them there. The vault's floor was oak and would need to be replaced every five years or so (those trucks were heavy). The old floor would be ripped up and burrned; enough gold would be recovered to pay for the replacement.