Gringotts is the name of the bank ran by Goblins. Their villages are built completely underground featuring a huge tunneling system. Gringotts has additionally a branch building in every bigger magical city and the absolute monopoly over the Wizarding gold.

Great Accounting Edit

The Great Accounting is a minor crisis which has fallen upon the Goblins due to the usage of time turners. A female twin pairing changed their heiress position because one was suddenly older than the other due the usage of said item and additionally recognized by magic itself as the heiress, which before was always done by the birth date. Since then Goblins always check how long one wizard has actually lived, instead relying only on the date of birth. Upon further investigating they realized, that due to one Lord Slytherin's time travel the law of magic itself was changed and hundred of thousands of documents had to be adjusted.[1]

Gringotts banking treaty Edit

The Gringotts banking treaty gives the goblins a world-wide monopoly on wizarding banking. By further controlling all gold they essentially have a monopoly over the galleons currency, giving themselves a higher status in the wizards dominated world.[2] They even go as far as warding every muggle bank with goblin wizard-detection, key-out, anti-apparition wards and an invisible-to-muggle, miniature thief's downfall to keep everything to them as close as only possible.

The gold itself has no value for them since they even use it to decorate rooms or to build really huge statues.[3] A similar situation exists in the mundane world where the worth of diamonds is much higher, than it should be, due to one company having a monopoly over them, combined with some very successful PR gags. In our world the company can exchange the diamonds for real currency, which is though impossible for the Goblins, since the Galleons are the currency in the wizarding world. It is theorized that they have something more valuable than that.

It is also noticed, that Goblins do not trade with galleons with themselves, but rather tend to fight over stuff, as seen with the Slytherin vaults.[4] Further goblins share everything important with the king, whose existence has not been confirmed yet, and he then uses all the information to try to find the best way for goblins to move onward. Currently it seems like the Goblins control anything that has to do with gold to keep their status quo with the wizards in tact.

References Edit

  1. Book 1 - RiBSR - Ch. 9 - The Book of Names - 1/2,
    The Goblin's surprised Harry Potter about their time travel knowledge.
  2. Book 1 - RiBSR - Ch. 3 - Flying Under the Radar - Gold,
    Harry Potter explained how economically strong the Goblin's were.
  3. Book 3 - NRiCaD - Ch. 42 - Daphne's Birthday, Work and Play - 1/2,
    Harry and Daphne are visiting the Goblin underground towns.
  4. Book 1 - RiBSR - Ch. 10 - The Book of Names - 2/2,
    Harry learns that the Goblins did fight over the right for his vaults.

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