Gordon Brown's Gold Sale Cost UK £35 Billion
Gordon Brown's decision to sell nearly half of the UK's gold reserves between 1999 and 2002 has resulted in a significant loss for the nation. The gold, worth £2.6 billion at the time, would now be valued at £38 billion, a staggering £35 billion increase. This loss comes as gold prices have soared, climbing by almost 15-fold since the sale.
Brown, then the Labour Chancellor, sold the gold reserves at a time when the metal's price was relatively low, around $275 an ounce. Today, gold prices have reached a record high of $4,040 an ounce, driven by factors such as global conflicts and fears about inflation and government debt. Central banks worldwide, including those of major economies like China and Russia, have been stockpiling gold, contributing to a global reserve of £3.48 trillion. The US, with 8,133 tonnes, remains the world's largest gold holder, now valued at $1.04 trillion dollars.
The sale of the UK's gold reserves by Gordon Brown has proven costly, with the nation missing out on a potential £35 billion windfall. As gold continues to rally, driven by global uncertainties, the decision to sell the reserves has come under renewed scrutiny.
