Something Just Snapped At The Comex (Zero Hedge), page-55

Andy is not sure how these things work but his guess is if there is any kind of bank failure the UK central bank would just print up the new money for the guaranteed amount for each customer.

While in the old days they would say that all roads lead to Rome, today among goldbugs they all do say that all roads lead to the  horror of all horrors, the printing  of money. However, I must warn you that Andy is forgeting an horror even more horrorous than the horror of all horrors, the revival of executive order 6102. Yes, the compulsory acquisition  of your gold with printed money (a.k.a. confiscation).

As a good and successful business I am sure that Andy will be planing to build a vault for his gold under the ice cap in  Antartica and joining him in that endenvour should be a matter of upmost priority for every goldbug.

I don't know anything about  the UK's deposit insurance scheme  but I would not be surprised if it works or is intented to work like the FDIC  in the US.

" As of August 27, 2014, the FDIC insured deposits at 6,638 institutions.^[2] The FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages banks in receiverships (failed banks). The FDIC receives no congressional appropriations — it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities."

From Krugman,

The basic mindset of the kind of people who pay Ron Paul for his economic advice is pretty clear: they’ve made some money over the course of their lives, they believe that all of it reflects their own virtue, and they think they know from that experience what it takes to create wealth. They hear that the Fed is printing money, and it sounds to them like a violation of both the laws of economics and morality — and they surely think of it as a plot to take away their completely earned gains and give them to Those People...

Is that how you feel Andy?

https://en.wikipedia.org/wiki/Executive_Order_6102

https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation

http://krugman.blogs.nytimes.com/2015/09/07/affinity-and-inflation/