Skip to content

The 1999 Bank Bailout

July 7, 2012

Why did Brown sell the majority of Britain’s gold reserves for a knock down price?

Answer according to the Telegraph: to bail out banks which had been short selling gold, see,

Would the Tories have done the same – probably.

If the 400 tons of gold were sold at an average price of $276 per ounce and gold price is now $1615 then if we had not sold it we would be $17 bn better off – (neglecting interest).

But were any global banks really in trouble. The article suggested one such had shorted on 2 tons. At $300 per ounce this is around $20million, hardly a killer. Goldman couldn’t have conned Brown could they?

Leave a Comment

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: