March 22nd, 2011

Gaddafi More Savvy Economist than Ed Balls

RPI rose to 5.5% year-on-year in February – even higher than consensus economists expected – again. The FT reports this morning that Gaddafi is sitting on $6.5 billion of gold in his war chest.  Gold of course is the great inflation hedge throughout history. Britain on the other hand sold off her gold reserves at the behest of Ed Balls when he was at the Treasury. Who is more mad?


  1. 1
    Fed up says:

    “I’m mad as hell and I’m not going to take this any more”

  2. 2
    Billy Bowden is the greatest umpire ever ! says:

    Well Mad Dog got one thing right then.

  3. 3
    Gladys Minkwater says:

    Rhetorical questions now Guido?

  4. 4

    You are John Rentoul and can keep your free year’s subscription to the Indy.

  5. 5
    Alan Douglas says:

    Brown bottom AND Balls – was there ever a more lethal combo ?

    Alan Douglas

  6. 6
    Billy Bowden is the greatest umpire ever ! says:

    Ed Balls and reallity have never been seen together, This was the bloke that said we should spend more and not cut at all , This is the bloke that unleashed “the forces of hell” onto one of his on party, This is the bloke that has flipped his and his husbands house to con the taxpayer, This is the bloke that dressed up as a Nazi, This is the bloke that claimed he never knew “Mr Mcbide” , This is the bloke that used to be sec of state for Education, This is a bloke who hated more in his own party , This is the bloke that was in charge of socail services when the Baby P stuff hit the fan.

    This is Ed Balls.

  7. 7
    Dick the Prick says:

    Unlike Balls who’s managed to fuck up everything. I really feel sorry for Yvette.

  8. 8

    Daft argument, Guido.

    If Gaddafi wants to spend his gold he’ll have to turn it into cash. Or is gold never to be sold? It’s only worth something if you trade it. Otherwise it’s just a lump of metal.

  9. 9
    Hugh Janus says:

    Liebour printing all that money. If they thought it was a good idea then you can rest assured that disaster is just around the corner.

  10. 10
    Billy Bowden is the greatest umpire ever ! says:

    I dont , You make your bed and lay in it i was told.

  11. 11
    keddaw says:

    Gold is the largest and longest lasting bubble in history.

    It is pathetic at virtually anything useful and has value simply because idiots believe it has value.

    Britain was right to sell off gold as it was massively overvalued. Just because it went up afterwards doesn’t make that assessment wrong. What was wrong was signalling to the markets that they were about to do it and so getting much less than market price before that announcement.

  12. 12

    Don’t worry, that gold will be in our hands soon enough.

  13. 13
    sockpuppet #4 says:

    You enjoy using the word “Mad”.

    Balls didn’t see any risk in the future, and from the graph of the gold market back then, neither did anyone else. Unwise. not risk averse enough. hubris. Not beyond the logical understanding of anyone else, so not mad.

    So. who bought loads of gold in 1999-2002, and kept it ? I didn’t.

  14. 14
    Anonymous says:

    You missed a bit Billy:

    “He stepped down as chief economic adviser to the Treasury, but was given a position at the Smith Institute, a political think tank. He reportedly was paid £100,000 for less than a year’s work. HM Treasury and the Cabinet Office confirmed that “the normal and proper procedures were followed.”

    And this bit:

    “In September 2007, with his wife Yvette Cooper, he was accused of “breaking the spirit of Commons rules” by using MPs’ allowances to help pay for a £655,000 home in north London. Balls and his wife bought a four-bed house in Stoke Newington, north London, and registered this as their second home (rather than their home in Castleford, West Yorkshire) in order to qualify for up to £44,000 a year to subsidise a reported £438,000 mortgage under the Commons Additional Costs Allowance, of which they claimed £24,400. This is despite both spouses working in London full-time and their children attending local London schools. Through a spokesman, Balls and Cooper asserted that “The whole family travel between their Yorkshire home and London each week when Parliament is sitting. As they are all in London during the week, their children have always attended the nearest school to their London house.”

    Additional allegations have been made about Balls’ and his wife’s “flipping” of their second home three times within the space of two years.”

    This is one very nasty political thug who inhabits his own little talent-free world. Shame on our system for letting in people like him.

  15. 15

    You have the brains of Ed Balls. It is a store of value. Unlike paper money.

    It can and is exchangeable for guns, girls and ganja as well as more ordinary commodities.

  16. 16
    sockpuppet #4 says:

    How do the FT know? Has anyone looked in the vaults? has anyone checked to see whether they’re painted bricks?

    I note that he had 1000s of planes, and only 30 of them worked. chaos.

  17. 17

    China and India.

  18. 18

    Did you actually read the FT article. No?

  19. 19
    Billy Bowden is the greatest umpire ever ! says:

    didnt a few of his supporters/ambassders defect a few weeks ago?

  20. 20
    sockpuppet #4 says:

    No. I was lazy. I would have read it if the link you gave pointed to it, rather than your own twitter.

  21. 21
    Billy Bowden is the greatest umpire ever ! says:

    I did mention the flipping , But not to the excellent detail that you did :-)

  22. 22
    jgm2 says:

    Not beyond the logical understanding of anyone else

    Here’s what’s byond the logical understanding; the reverse-engineered justification was that the T*ries had allowed the ‘mix’ of foreign reserves and Gold to get too out of kilter. We should sell the ‘over-represented’ gold at 250 USD an ounce and buy Euros and dollars.

    The obvious hole in this argument is that if gold represented too much value-wise of the national portfolio at 250 dollars an ounce then why didn’t he sell another stcak of it now that it’s 1400 dollars an ounce? I mean, if it was ‘just right’ to sell half of it at 250 an ounce we must be way over-valued now at 1400 an ounce?

    The simple fact is that somebody took them into a room full of gold and they had a rush of blood to the head. They sold the gold because they could. Just to see what it would feel like. Just to have that surge of power knowing that you could do that if you felt like it.

    Same reason Blair had his war. That and he thought he’d get a Falklands ‘bounce’.

    No other reason.

    The c*unts are/were completely intoxicated by power.

  23. 23
    Colonel Mad Dog Gaddafi says:

    I would like to thank my good friend Gordon Brown for depressing the price of gold. As a result I was able to $billions of the yellow stuff at bargain basement prices. But why did he buy Euros with the proceeds, is he mad?

  24. 24
    sockpuppet #4 says:

    So we’re all mad.

    In fact, I bought a house back then, even gazumped someone. I think anyone would have thought me mad to do otherwise back then. I was equally mad to think that the housing market was going to go pop in 2004. Perhaps rather fucking doolally right now to think that a rise gold can’t last forever. As part of the value of gold is inversely proportional to pessimism, I can’t see where anyone can get any more pessimism. Although I do have my own personal mine of it in the garden.

  25. 25
    Disenfranchised of Buckingham says:

    As far as Gaddaffi is concerned it’s his money and he cares about looking after it.

    UK politicians and civil servants don’t treat our money as if it were their own and are happy to blow the lot. Until we start lynching a few politicos it won’t change.

  26. 26
    Dick the Prick says:

    I guess so, she’s got a reputation for blithering incompetence coupled with inappropriate arrogance so I guess they work quite well together. Glad she barren or he’s a jaffa. Unless one of them is a beard.

  27. 27
    Billy Bowden is the greatest umpire ever ! says:

    She is Bob Crows ladyboy.

  28. 28
    Anonymous says:

    You have a point. It’s not exactly easy to lump gold around, especially when there are missiles after you.

    Some of it might not even be in Libya?

  29. 29
    Hard Strapped Taxpayer says:

    One bar would buy a lot of beans in Tesco.

  30. 30
    Dick the Prick says:

    More ordinary commodities??? Beer? That George best quote resonates – ‘I spent most of my money on booze, birds and partying and the rest I just wasted’.

  31. 31
    sockpuppet #4 says:

    “reverse-engineered justification ” funny way of saying “excuse”

  32. 32
    Anonymous says:

    Nail on the head

  33. 33
    Anonymous says:

    Gold is never likely to lose ALL it’s value, is it? They sold at a low. It could only go up from there, whatever happened?

  34. 34
    Desperate Dan says:

    I just like to say how much I’m looking forward to Order-Order TV after Guido takes over the Sky News operation.

  35. 35
    Mr Nice says:

    Guns, girls and ganja- all the necessities for a decent quality of life!

  36. 36
    sockpuppet #4 says:

    OK, I’ve read it. it doesn’t say why the IMF believes he’s got 143 tonnes of gold.

    As if Gaddafi wouldnt have been bullshitting the IMF or doing secret deals, like buying things on the black market or funding terrorism.

  37. 37
    Mr & Mrs Ball-Scooper, Triple Flippers says:

    You bastards !!

  38. 38
    We is de future says:

    Lissen blud – dem fings wot u say – dem guns hoes n weed – dey is defo like fings wot we is sayin is de most well good fings we is lookin to get evry day. Respect to de blowin up gweedo man.

  39. 39
    jgm2 says:

    Fair point.

  40. 40
    Anonymous says:

    Don’t gold trades have to be reported?

    Not that he would be bothered about that, I guess. But the agents might have done?

  41. 41
    Before Gold there where Tulips and Salt says:

    Wrong, Humanity is the longest lasting bubble in history.

    It will have to pop sooner or later.

  42. 42
    Billy Bowden is the greatest umpire ever ! says:

    So what you are saying Guido is that Ed Balls is a economic terrorist?

  43. 43
    Gordon ( SoldGoldAtThe ) BottomBrown says:

    Neither Ed nor I sold the Nation’s gold.

    It was Sue.

  44. 44
    Before Gold there where Tulips and Salt says:

    Senile George Soros is eaten up daily with regret and bitterness that he missed the boat on the Gold Rush all those years ago.

  45. 45
    George Bests Liver says:

    Good point.

  46. 46
    Anonymous says:

    Not really. We have to have something which we agree to give value, which doesn’t have the dangers of cash. And which is relatively scarce and without large, easily accessible sources.

    Could be rare sea shells or mammoth shit. Doesn’t really matter as long as we agree.

  47. 47
    Making economics simple for retards says:

    It has value because it is scarce and it is beautiful.

  48. 48
    jgm2 says:

    Things can’t get any worse?

    Fucking hell. On balance I’d say things are likely to get a lot worse before they get any better. As the previous thread demonstrates the so-called ‘cuts’ that have supposedly placated the international mar*K*ets are fucking non-existent. So either Ned Balls is right and we don’t need (in the sense of financially forced) to be making any cuts at all or we will have to make some fucking serious cuts/savings once the mar*ke*ts cotton on to our sleight-of-hand.

    And with a background of all these cuts we get ourselves involved in another war for which most of the population (rightly in my view) is drawing a direct parallel to Iraq. Ie – it’s none of our fucking business – what are we trying to achieve – how will we disengage ourselves – what defines ‘victory’?

    What. The. Fuck. Are. We. Doing?

  49. 49
    Goldbug says:

    A lot easier to carry a few tons of gold than launder cash through western state controlled banks. And why assume it isn’t already strategically hidden around the world. Gaddafi has lasted longer than any leader ever has in the west and that doesn’t happen by being stupid.

  50. 50

    Expect a lot more high quality mud wrestling and wet t shirt compos when he does.

  51. 51
    Anonymous says:


  52. 52
    Tax Payer Joe Public says:

    Always remember he’s aided & abetted plus helped at every opportunity by the
    biggest left wing propaganda machine in the world the totally Biased BBC. They always dress up his ignorant stupid comments as some sort of authoritive finanacial voice that has to be listened to & rammed down our throats 24/7. Instead its plenty of what I deposit in the toilet each morning but the biased BBC seems totally unable to smell the reality of the Balls doctorine, Crap pure utter Crap for which he’s been screwing the UK Tax Payers to pay for at every opportunity this machiavellian anal despot can foster on the population. The sooner the biased BBC is FORCED to choke Balls off from the oxygen of publicity the better for the long suffering tax payers.

  53. 53
    jgm2 says:

    Oh, don’t worry – he’s probably being shorting the arse out of it for the past ten years. It being a ‘bubble’ and all.

  54. 54
    Morgs says:

    Guido, maybe you should give yourself the OTT award for that post. Can you really compare economic miscalculations with mass genocide of your civilians you dismiss as Al-Qaeda agents? Poor by you…

  55. 55
    Southern Softy says:

    Or honest politicans – rarer than hens teeth.

  56. 56
    Gaddafi on Brown says:

    That was a disaster. Should never have put me with that man. Whose idea was that?

    Saif’s, I think. Just ridiculous.

    Everything. He’s just this sort of bigoted man who said she used to be a Libyan supporter. Ridiculous.

  57. 57
    Goldbug says:

    Actually gold and silver are the only real money and the experiment with fiat currencies is the bubble. Throughout history every civilisation that has debased it’s currency or severed the link with gold has collapsed- no exceptions. When we used gold Britain rose to the most powerful country on Earth so it didn’t do us any harm. Whereas the paper money crap we use now which allows politicians to steal your savings, start wars and buy votes. By the way if gold is only worth something because idiots believe it has value- what about paper money?

  58. 58
    Lord Mangledbum of Boys says:

    Yes, he is mad. But we didn’t like to tell people, at the time. We kind of hoped he’d remain Prime Minister.

  59. 59



  60. 60
    jgm2 says:

    with mass genocide of your civilians you dismiss as Al-Qaeda agents

    Maybe they are Al-Qaeda agents. It’s just a civil war. None of our business. Just like the Russians in Chechnya. Fuck all to do with us.

  61. 61
    Anonymous says:

    Cash is a contract, backed up by governments. As you say, governments piss about so cash is inherently risky.

    Gold (or sea shells) are constants. Nobody can mess about with it’s value easily. Therefore it is safe.

  62. 62
    jgm2 says:

    By the way if gold is only worth something because idiots believe it has value- what about paper money

    Precisely. Paper will always be paper – prone to printing as evidenced by the 200bn quid print-run and subsequent devaluation Brown was forced to make to pay the civil service last year and stagger over the election finish-line.

  63. 63
    Hamish says:

    Wow, you are snippy today, Guido.
    Your command of logic has deserted you and your grammar is as bad as Billy Bowden’s.
    Dominic’s point is a perfectly reasonable one, and he doesn’t deserve to be sneered at by mine host.

    Gold does have an intrinsic value, but it derives largely from its use in electrical contacts.
    Otherwise, it is just like money in the bank, waiting to be used.

    Your other image, baked beans, is more credible, especially since we learn from Scott’s polar expedition, they remain palatable centuries beyond their expiry date.

  64. 64

    O/T but,

    Guido have a look at Newsnet Scotland and the Dear Westmisnter divorce letter – a work of genius that may be appreciated by some of your more erudite followers

  65. 65
    Boyz 'n da Midsomer Hood says:

    “Guns, girls and ganja” – all the necessities of a multi-culti makeover of Midsomer Murders.

  66. 66
    Rahm E. Mannuel says:

    Look on the bright side, Gay Fawker, never let an opportunity go to waste.

    With the all the goys using up their worthless pounds on $1m/a pop Tomahawks and your Mervyn Shalom King doing sterling – geddit? – work for the Tribe in London, printing pounds till they’re worth less than Andrex, my ex buddies in the Is raeli Offensive F orces thought why not have another crack at holo causting some more cockroach women and babies in G aza whilst the BBC broadcasts diversions? Great day to bury, and vaporise worthless shit, no? What say you, oh great friend and shill for the Psycho Ones?

  67. 67
    Billy Bowden is the greatest umpire ever ! says:

    I would love to watch Ed Balls get waterboarded.

  68. 68
    jgm2 says:

    Public sector borrowing last month was £11.8bn, a record for the month of February.


    My arse.

  69. 69
    jgm2 says:

    Dragged through Mogadishu chained to a Toyota pick-up would be better.

  70. 70
    Salad In says:

    So weak!

  71. 71
    Taxfodder says:

    Its the normal yarr boo sucks argument.

    The plain fact is over the last 60 years our so called politicians on all sides have proven to be anything but clever unless of course you consider looking after themselves and mates before putting their countrymen first, if at all.

    Pretty much like Gaddafi in that respect, drill down through all the indolence and hypocrisy you won’t see much difference.

  72. 72
    Anonymous says:

    Call me an old cynic, but a few weeks ago you just had a few protestors demonstrating against Gaddafi (ie like Egypt), but then as soon as Gaddafi started fighting the protestors, all of a sudden millions of armed militia appeared from nowhere.

    Now Obama has said that he wants to get rid of Gaddafi, and that he has lots of tools available, not just his miltary, to achieve that.

    To me it seems obvious that the yanks (and probably the uk, and the french) sold/gave arms to anyone who would try and unseat Gaddafi.

    It looks to me like a straight forward western-funded military coup against Gaddafi in a bid to get more control over the oil supply.

  73. 73
    Socialism is a mental illness says:

    “it is just like money in the bank”

    Erm. 10 years ago, gold was selling for about US$240 per ounce, now it’s worth US$1,440. If you put $240 in your bank account in 2001, do you think your account balance would be $1,440 today?

    Gold is a commodity. You buy low, sell high. Gordon sold at a historic low. And pre-announced the sale, driving it lower.

  74. 74
    Dick the Prick says:

    It’s a specialist market watching Kay Burley & Jeff Randall slog it out but my money’s on Kay. Jeff seems quite bright so best leggit.

  75. 75
    Socialism is a mental illness says:

    It was massively over-valued?

    Here comes reality marching up to you and punching you full in the face, repeatedly: Gordon sold gold at the massively over-valued price of around $240 per ounce. It’s now worth ‘only’ $1,440 per ounce.

    Thank God Gordon off-loaded 395 tons that overvalued gold!

  76. 76
    Bled White Taxpayer says:

    They’ve got 3 children. Poor bastards having those two as parents.

  77. 77
    Anonymous says:

    “Economic terrorism” is a perfect description of what Brown/Balls did to this country.

    They did far more damage to the uk than any terrorist could deam of.

    What terrorists do you know that could inflict around £4trillion of real public debt, a financial/banking collapse, contribute significantly towards the worst recession for about 100 years, and give our democratic rights away to an unelected beauracracy who then charges us billions a year for the privelege of not being able to create our own laws/government anymore?

  78. 78
    Titford Hat says:

    That possibly depends whether they’re frozen solid for the duration.

  79. 79
    David Camoron says:

    I was hoping you were going to tell me.

    Not that I’d listen.

  80. 80
    MRJ says:

    Surcharge the bastards! Take every f*****g penny off Balls, Brown, Bliar, etc and bankrupt the Labour party for good measure.

  81. 81
    Labourunionsbbc we are one says:

    So What!

  82. 82
    Bled White Taxpayer says:

    Are we related? ;)

  83. 83
    Economics of a madhouse says:

    That’s about the same as our annual foreign aid budget. So one month every year, Britain borrows £11.8 billion in order to piss it away on things like India’s space programme. Smart. It warms the cockles of my heart knowing we’re such a generous nation.

  84. 84
    keddaw says:

    No-one (well not me at least) is arguing paper money is any better, I am simply pointing out that gold, as valued in other goods and services, is massively over-valued.

    And as for the whole gold as a store of value fallacy, every time there is a new gold rush its value plummets and currencies based on it get into massive inflation – see the US gold rush or the Spanish plunder of South America.

    Incidentally, the locals in South America didn’t value gold or silver as they were too malleable and so couldn’t understand the craze for it.

    On another note, maybe we are pretending that gold is valuable until China, INdia and Russia have all of it then we actually value what is valuable – the means of production, technology and land.

  85. 85
    no free biscuits then? says:

    Balls is scum, it’s as simple as that!
    Brendan Barber is currently on the daily politics. What a nob head piece of shite.

  86. 86
    jgm2 says:

    the means of production, technology and land.

    China, India and Russia have plenty of that too.

  87. 87
    Socialism is a mental illness says:

    Don’t forget their internal organs, bone marrow, fillings etc – all potentially of value in certain markets.

  88. 88
    Morgs says:

    Old cynic

  89. 89
    Samuel Pepys says:

    Samuel Peyps, 17th March

    I met Mr. Ball, and did receive the paper I went for; and there fell in talk with him, who, being an old cavalier, do swear and curse at the present state of things, that we should be brought to this, that we must be undone and cannot be saved; that the Parliament is sitting now, and will till midnight, to find how to raise this L300,000, and he doubts they will not do it so as to be seasonable for the King.

    then to the Excize Office, where I find Mr. Ball in a mighty trouble that he is to be put out of his place at Midsummer, the whole Commission being to cease, and the truth is I think they are very fair dealing men, all of them.

  90. 90


  91. 91
    Dick the Prick says:

    Ooops – sit corrected. Cheers.

  92. 92
    Billy Bowden is the greatest umpire ever ! says:

    Old cynic.

  93. 93
    The Campaign for Plain English says:


  94. 94
    Never again in our name Mr Cameron says:

    It’s apparent from words of politicians both Ministers,Coalition Members and Opposition MPs in the media and elsewhere that nobody has the slightest idea of the strategic long term goal of this operation and have no idea of a credible exit policy.

    They voted to commit British forces and have no idea of the cost,how long we are involved and how we exit.

    They don’t even have an assurance from the PM that British ground troops will not be involved apart from the totally inadequate phrase “no intention of troops being put in as an “occupying force”…no mention of whether they will go in as part of a peace-keeping force or as humanitarain assistance or whether as I suspect we already have special forces in the country. Once again Parliament has not held the government to account. The British public will accept contributing to a “no-fly zone” and “special forces” on the ground as an extraction and reconnaissance force but with a set time limit and restrictions on any other action by them but we do not support an indefinite operation or regime change AND if our politicians haven’t already understood it…there are absolutely no circumstances NONE that the public will accept to put one British soldier into Libya.We have been down this road before in both Iraq and Afghanistan and we do not accept the need for such another war in the Middle East.It is for the Arab League or the African Union to put troops on the ground.

  95. 95
    Bled White Taxpayer says:

    You’re right. The other and more shocking way of thinking about it is that gold is of a fixed value, and that money depreciates annually. The US dollar today is worth 2% of what it was worth in 1900, and the rate of decline is increasing as QE generates more worthless dollars. The same is happening in the UK to sterling, and indeed every other fiat currency in the world. It’s a law of economics.

    In 1900 you could buy a very good suit, shoes and shirt for one ounce of gold, valued at about $21. The same is true today, with gold at $1440. I’ve used dollars instead of pounds as sterling has been reinvented twice in the last 100 years. In one hundred years time, you will still be able to buy a very good suit for the value of one ounce of gold, even if that ounce costs you $20,000.

    The average lifespan of every unbacked fiat currency throughout history has been 40 years. This year is the 40th year since Nixon took the dollar off the gold standard in 1971, and the US Treasury and Federal Reserve are very rapidly destroying the world’s reserve currency through QE.

  96. 96
    jgm2 says:

    In the broad context of his legion of idiocies the loss represents only a couple of weeks of Labour deficit.

    A mere trifle in Brown’s shock and awe economic reign.

  97. 97
    Penfold says:

    Balls is of course an economic genious and will be proved right….
    Yea right, right that he is a prize wanker and has cost this country dear, a prize A1 idiot who can’t even pay his rent, clean his office and adhere to a lease T & C’s.
    Who let this man loose on the country?

    Oh yes, his partner in crime and that other prize moron…Gordon Brown.

    Balls and Brown make the case for euthanasia and selective breeding better by the second.

    Perhaps the nice rebels, when they gain power will pay us for getting rid of Gadaffi and we can recoup some gelt, plus a small operating profit as well you understand, capital employed, depreciation, etc,.

  98. 98
    Billy Bowden is the greatest umpire ever ! says:

    so apart from the fact “Theres no money left ” there is also no gold left.


  99. 99
    Eeu to me says:

    Don’t watch it now, can’t stand that horrible woman that they pretend is intelligent, she’s so left wing that any pretence of the programme being balanced is like saying gadnoflyzone is the nice person you met on holiday.

  100. 100
    bergen says:

    It won’t happen.Cameron seems to be like a rabbit in front of the headlights when it comes to the BBC.He must know they use every opportunity to undermine his administration and we all knew from Day one that this was going to happen.He signed his political death warrent by not sorting them out from the start.

  101. 101
    Bled White Taxpayer says:

    Gold has value because it is a constant, and everyone can agree what it is. 95% of the gold ever mined is still in physical existence. Gold is hardly used in manufacturing or industry – there are other metals that are better and cheaper. The speed of light is of no practical utility on earth, but because it is an accepted constant it is useful to physicists and agreed upon by all.

    The more interesting metal is silver, which has startling utility across a very broad range of industries and places such as medicine. As a result, 80% of the annual global production of silver is consumed, with the remaining 20% going into jewellery and bullion. The known silver reserves on earth as measured by the US Geological Survey are predicted to be exhausted in 20-30 years based on current rates of consumption. Historically, the ratio of value between gold and silver has remained relatively constant at about 1:18. However, in the last 30 years the ratio ballooned to about 1:80, and even now sits at about 1:50, all for no apparent reason (well, discounting price manipulation). If you want to invest in something that will most likely increase in value as measured against gold, buy some silver and bury it in your garden. In twenty years from now it will be worth (as measured against gold) considerably more than it was when you bought it. It will be in very high demand and limited supply for industrial use.

  102. 102
    sockpuppet #4 says:

    And people in china and india are sober enough to use it.

  103. 103
    Maddamar Qaddaffi says:

    I shot down that Damn Yankie f15e strike eagle !
    I Keeeeel them all ! Except my good friend Tony Blair.

  104. 104
    QWERTY says:

    Gaddafi and Ed Testicles both love Hitler.

  105. 105
    Up sh1t creek says:

    That’s half the UK’s gold reserves sold… by Labour, which Gordon Brown blames on the Conservatives.

    Page 26, December 2010, 9.98Million fine ounces, which has been the same figure for a lot of years since the gold sale to save two crooked banks.

    BUT, note though that on Page27, the Bank of England’s gold reserves have been ZERO for a loooong time now.

  106. 106
    Number 10's Cunt says:

    The merkins have a ship called USS Ponce!!

  107. 107
    Anonymous says:

    Both, one after the other? To be followed by 250 tonnes of gold falling onto him.

  108. 108
    Hard Strapped Taxpayer says:

    Only by lack of resources………… removed.

  109. 109
    Campaign for a Sense of our Cultural Heritage says:

    Knavish swiver.

  110. 110

    Sleepy fetus.. This red bull isn’t giving me any wings so I’m struggling hard to stay awake in physics.. Someone bring me starbucks!

  111. 111
    Anonymous says:

    gold is money dominic and hamish. money is paper gold is gold – its not hard

  112. 112
    Anonymous says:

    keddaw draw a chart showing the gold price vs. any commodity price (gold price divided by commodity price) and you will see that gold produces a relatively stable constant price over time (there are obviously blips due to supply/demand factors but the long – term price is stable).

    you can do this in any currency.

    for example, since 1983 one barrel of oil is worth 0.062 oz gold. the current ratio is 0.081 and as such gold or oil is over/undervalued. the ratio doesn’t deviate from the mean for long. at today’s oil price, the implied valuation of gold is $1860/oz.

    gold is money money is just paper this is not hard stuff guys

  113. 113
    Ain't worth the paper it's printed on says:

    “National gold reserves have a confidence and stability-building function for the single currency in a monetary union,” the Bundesbank recently reaffirmed. The prudent bankers in the Bundesbank said that financial and political uncertainty make their gold reserves even more important than before. The German experience of the hyperinflation of the Weimar Republic makes German central bankers wary of putting all their faith in fiat paper currencies backed by nothing except by confidence in politicians and central bankers.

    This is something that Gordon Brown had forgotten when he sold much of Britain’s gold reserves at the very bottom of the market (indeed the announcement in advance of the intention to sell UK gold reserves contributed to a fall in the gold price to record lows) and which may lead to considerable monetary difficulties for the British pound and sterling in the coming years.

    Germany, Europe’s largest economy, holds around 11 percent of worldwide gold reserves. The Bundesbank currently holds around 3,400 tons of gold, worth around 70 billion euros ($92.43 billion)

    (Unless the gold….stored in USA since 1945 and kept there due to the Cold War threat…..has been ‘leased and loaned out’ to support Wall Street)

  114. 114
    Ed Balls brown enevelope says:

    A pavement pizza is more savvy than Ed Balls. Does anyone actually believe what the fool says.

  115. 115

    Ed Balls is a fool!

  116. 116













  117. 117
    Call me Infidel says:

    The kilo of silver i bought last year has doubled in value. I just wish I had bought more. Though with VAT being charged on silver (unlike gold) it is quite galling having to hand the scumbags in the treasury 20% of the price.

  118. 118
    Bled White Taxpayer says:

    Agreed. Mine’s safely hidden in Canada, bought there with no VAT and never exported. I might end up retiring there so I may never need to import it to UK. OTOH, only ever buy UK gold coins (Sovereigns or Brittanias), as there’s no CGT on them as they are legal tender. Don’t buy foreign gold coins or bullion bars as these will be liable to CGT.

  119. 119
    machiavellian anal despot says:

    Great phrase. Balls has scented the need for a backup plan and was recently heard giving a performance of his extended ‘it started in America’ script on LBC (Alistair Campbell-in-for-Iain Dale [that’s I-A-I-N]). The shameless twat.

  120. 120
    Worthless Lib Dem Pledge says:

    I thought we were to be told why Brown sold the gold against advice last April? When are we to find out why he sold the gold?

  121. 121
    Archie says:

    Yeah, I heard that too! Self-serving c*unt. Pure vomit inducing!

  122. 122
    Archie says:

    Pulchritudinous wretch!

  123. 123

    Store of value? Ok. So I buy guns for gold without bothering with the cash bit in between. And the difference is, Guido? You still have to trade the gold at the prevailing cash value.

    I have the brains of Ed Balls? You mean a First from Oxford and then a Kennedy Scholarship to Harvard, specialising in Economics?

    I’m flattered – thanks!

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