Skip to content
Subscriber Only

About That Gold Stored in Flood-Prone Lower Manhattan

The New York Fed's bullion is below sea level—as intended
About That Gold Stored in Flood-Prone Lower Manhattan
Photograph by Federal Reserve Bank of New York via Bloomberg

As New York City continues to dry out in the aftermath of Hurricane Sandy, the financial world is reconsidering just how smart it is to place critical pieces of infrastructure in flood-prone areas. Citigroup’s waterlogged building at 111 Wall St. will be unusable for several weeks, and two critical Verizon Communications facilities suffered extensive flooding during the storm.

At least the material at those sites is replaceable. What about the nearly 15 million pounds of gold bricks stored at the New York Fed?