Brown's Bottom

In 1999 Gordon Brown somehow managed to flog more than half of Britain's painfully acquired gold reserves (400 tons) just before the gold price took off, costing us a mind-boggling £2bn. He actually managed to trade at the worst prices in the last quarter century.

It was May 1999 and the gold price had stagnated for much of the decade. The traders present — including senior executives from at least two big investment banks — warned that Brown, who was not at the meeting, could barely have chosen a worse moment.

In the room, just behind the governor’s main office, they cautioned that gold traditionally moved in decades-long cycles and that the price was likely to increase. They added that even if the sale were to go ahead, the timings and amounts should not be announced, as the gold price would plunge.

Martin Stokes, former vice-president at JP Morgan, who was also present, said: “I was surprised they had chosen the auction method. It indicated they did not have a real understanding of the gold market

Sources: TimesOnline
:burningourmoney.blogspot.com