Brown’s economic legacy (gold)

Richard Spring MP explains how Brown oversaw the largest single loss in British history (£4bn).

The proceeds of the 1999 gold sale by Gordon Brown was invested 40 : 40 : 20 in the dollar, euro and yen. After taking into account all the currency movements and converting them back into the dollar at current rates, the loss is a massive and unprecedented £4 billion.

This is particularly relevant now that gold has soared to over $1000 an ounce.

A Treasury estimate from 1997 has the overall cost of Black Wednesday at £3.4bn. No one remembers this, and it did little to dent public confidence in Labour’s economic competence.

Thankfully, Northern Rock and the credit crunch has led to the downfall of the myth of Brown’s competence. Anatole Kaletsky wrote in January that Northern Rock is Brown’s Black Wednesday

It is good that the public has not forgotten this the way it forgot the gold sale.