UK’s Gold Sale: Should Gordon Brown Be Tried?

Great Britain was once the proud leader of the Classical Gold Standard. A global commercial and economic power, she operated on the gold standard from 1717.

The Standard allowed the free movement of capital which in turn financed and expanded trade. Twenty per-cent of the growth in global trade seen between 1880 and 1910 can be attributed to the stability of the gold standard.

The British people had faith in their money, its value, and the banks they kept it in. How far we have digressed from that confident nation.

The Great War and central banking promptly put an end to the loving relationship we Brits once had with gold. Our governments and central bankers decided over a few short years that we would be better off without our gold money.

Gradually over time we have lost our link to, and our faith in, gold; only to replace it with a faith in governments and the money which they print at their will.

The ultimate defamation to our historical appreciation of gold occurred between 1999 and 2002 when Gordon Brown sold 395 tonnes of Britain’s gold, at the lowest price for 20 years.

Now it is time to bring it back and reinstate our faith in gold. We need to ‘Buy Britain’s Gold Back’.

Britain’s Gold Sales

The motivation behind the gold sales was, according to the Treasury, risk reduction. They believed that with 50% of the net foreign currency reserves invested in gold, the exposure to the single asset was too great.

The proceeds of the gold sales were spent on purchasing further foreign currency assets for our reserves; the split of the assets purchased was broadly 40 per cent dollars, 40 per cent euros and 20 per cent yen.

An average price of $275.60 an ounce was achieved in the gold sales. Since that time gold’s price has increased six-fold. In contrast the values of the dollar, yen and euro have each dropped significantly thanks to inflation and poor monetary policies…

Was the Bank of England right to allow the gold sales?…

http://therealasset.co.uk/buy-britains-gold-back/

Speak Your Mind