Brown's Bottom : Why the Decision to Sell Gold Still Matters It Shows Brown's Bad Judgement

The billions lost by Brown’s decision to sell Britain’s gold reserves are mounting as gold prices have more than quadrupled since that debacle.  He has the reverse Midas touch when it comes to market timing.  This chart shows what is known in the gold market as “Brown’s Bottom”:

Cameron brought it up on budget day, Labour spinners reckon it is ancient history, even though they constantly hark back further to Thatcher’s days. Guido thinks it is worth the Tories bringing up gold sales fiasco as emblematic of Brown’s bad decisions.

Gilt yields, Credit Default Swap rates, inflation projections, Public Sector Borrowing Requirements and Quantitative Easing are incredibly important for an understanding of the economy, but they are unfortunately almost incomprehensible to the general public.

Selling off the Bank of England’s gold reserves is easy to understand, it was an act of monumental stupidity and it was executed incredibly badly (Brown tipped the market off to his future intentions).  Anybody who watches TV at the moment is bombarded with adverts offering to buy people’s gold (cheap), Dale Winton is telling viewers day and night that gold is up, the demographic that this is aimed at are C1s and D1s.  These voters might not be interested in the finer points of monetary policy, but they all know one thing for sure, it was a catastrophically expensive  economic error to sell the Bank of England’s gold reserves.  Driving home that simple message graphically will undermine  Brown’s claims to making the right judgements.  Whenever he says that he should be asked Was it the right judgement to sell gold at the bottom? In the past he has retorted that he bought euros, that has had very little return over above what the Bank of England could have got from leasing gold out to short sellers and nothing like the 300% return from holding gold over the same period.  It is easy to understand that selling gold was Brown’s £7 billion misjudgement…




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Jeremy Corbyn on Big Ben Bong Ban

“… if we have to miss Big Ben in reality for a while so that work can be done, well, that’s something we have to go through. It’s not a national disaster or catastrophe.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Telegraph Bad for Business Telegraph Bad for Business
Wonks: Prioritise HS3 Over HS2 Wonks: Prioritise HS3 Over HS2
Williamson’s 10 Dumbest Moments Williamson’s 10 Dumbest Moments
Northern Bubble Northern Bubble
Labour MP: I Won’t Hang Out With Tory Women Labour MP: I Won’t Hang Out With Tory Women
EFTA Court Model Backed by Brexiteers EFTA Court Model Backed by Brexiteers
Idea of Unilateral Free Trade Sent Commentariat into Spasms Idea of Unilateral Free Trade Sent Commentariat into Spasms
Sheerman Lobbying Prompts Calls for Ban Sheerman Lobbying Prompts Calls for Ban
Nasty Nat Picks on Tory MP’s Young Children Nasty Nat Picks on Tory MP’s Young Children
Remain Media Coverage Criticised By Experts Remain Media Coverage Criticised By Experts
Wings Over Scotland Arrested Wings Over Scotland Arrested
Watch and Hear: The Last Chime Watch and Hear: The Last Chime
Bonkers Bong Bowing and Reporting Bonkers Bong Bowing and Reporting
Why Transition Must Be Short Why Transition Must Be Short
PICTURES: Seumas’ Temper Tantrum PICTURES: Seumas’ Temper Tantrum
Don’t Believe ‘Victory For Hammond’ Spin Don’t Believe ‘Victory For Hammond’ Spin
Angry Adonis Wanted ‘Office for Students’ Job Angry Adonis Wanted ‘Office for Students’ Job
City Envoy Slams “Bewildering” Brussels City Envoy Slams “Bewildering” Brussels
Labour Pledged to Sell-Off Public Land Labour Pledged to Sell-Off Public Land
Corbyn’s ‘Local GPs’ Visit Staged by Labour Spin Doctor Corbyn’s ‘Local GPs’ Visit Staged by Labour Spin Doctor