Dear Gordon Brown

[johnfm]

Have you seen today's gold price?

You played a blinder buying that 400 tons of gold at $257/ounce.

At least this is the one brilliant financial move during your tenure - at $1400/ounce you have MADE us over £14 billion on that trade.

Thanks - I take back all the horrible things I have ever said about you.

[Mojooo]

johnfm said:

Have you seen today's gold price?

You played a blinder buying that 400 tons of gold at $257/ounce.

At least this is the one brilliant financial move during your tenure - at $1400/ounce you have MADE us over £14 billion on that trade.

Thanks - I take back all the horrible things I have ever said about you.

So how much gold did YOU buy at that earlier price?

[johnfm]

slightly less than 12,800,000 ounces.

My wallet was in my other trousers, so I didn't have the £2billion to hand.

[hornetrider]

It's late - am I missing something here, such as dripping Aussie sarcasm?

[johnfm]

hornetrider said:

It's late - am I missing something here, such as dripping Aussie sarcasm?

Yes.

I am taking the piss.

I thought the day that gold has hit $1400 US per ounce was a timely moment to point out that Gordon McFvckwit sold 400 tons (12,800,000 ounces) at an average of $275/ounce.

Inept twunt.

[ukwill]

Engrish. All your gold are ours.

[deeps]

I live in the gambling world, and hindsight is a wonderful thing, but that was one almighty misjudgement, if it was his own personal loss he would probably have contemplated suicide by now, but when you have no liability to your losses it doesn't matter what you do - he'll remain far wealthier than most of us despite his incompetence.

[HD Adam]

deeps said:

I live in the gambling world, and hindsight is a wonderful thing, but that was one almighty misjudgement, if it was his own personal loss he would probably have contemplated suicide by now, but when you have no liability to your losses it doesn't matter what you do - he'll remain far wealthier than most of us despite his incompetence.

But wasn't the misjudgement that he actually announced in advance that he would be selling the Gold, thus depressing the price before the event?

[hornetrider]

johnfm said:

hornetrider said:

It's late - am I missing something here, such as dripping Aussie sarcasm?

Yes.

I am taking the piss.

I thought the day that gold has hit $1400 US per ounce was a timely moment to point out that Gordon McFvckwit sold 400 tons (12,800,000 ounces) at an average of $275/ounce.

Inept twunt.

As I thought. As you were.

[ukwill]

deeps said:

I live in the gambling world, and hindsight is a wonderful thing, but that was one almighty misjudgement, if it was his own personal loss he would probably have contemplated suicide by now, but when you have no liability to your losses it doesn't matter what you do - he'll remain far wealthier than most of us despite his incompetence.

An interesting article: http://www.timesonline.co.uk/tol/news/politics/art...

[Frankeh]

So... When are people going to realise that gold is seriously overpriced?

[Timsta]

Frankeh said:

So... When are people going to realise that gold is seriously overpriced?

No it isn't. Gold prices, by definition, always sell at the market price. That's the point.

[Bing o]

Frankeh said:

So... When are people going to realise that gold is seriously overpriced?

It's been overpriced (but cheaper than now) for years - GoldenBoy anyone?

http://www.pistonheads.co.uk/gassing/topic.asp?h=0...

http://www.pistonheads.co.uk/gassing/topic.asp?h=0...

http://www.pistonheads.co.uk/gassing/topic.asp?h=0...

[Frankeh]

Timsta said:

Frankeh said:

So... When are people going to realise that gold is seriously overpriced?

No it isn't. Gold prices, by definition, always sell at the market price. That's the point.

Surely that's only true when currency is actually backed by gold which hasn't been the case for many years now.

[Bing o]

Frankeh said:

Timsta said:

Frankeh said:

So... When are people going to realise that gold is seriously overpriced?

No it isn't. Gold prices, by definition, always sell at the market price. That's the point.

Surely that's only true when currency is actually backed by gold which hasn't been the case for many years now.

Gold is always a good hedge when currencies are weak/engaging in QE...

[dwspirit]

How did racingdude009 ever become one of your candidates in the last election?

[12gauge]

HD Adam said:

deeps said:

I live in the gambling world, and hindsight is a wonderful thing, but that was one almighty misjudgement, if it was his own personal loss he would probably have contemplated suicide by now, but when you have no liability to your losses it doesn't matter what you do - he'll remain far wealthier than most of us despite his incompetence.

But wasn't the misjudgement that he actually announced in advance that he would be selling the Gold, thus depressing the price before the event?

Gordons advisors (inc the BoE) advised him not to sell.

He sold so as to bail out Goldman Sachs who, unless the gold price went down, would lose a lot of money on bad bets.

http://www.financialsensearchive.com/fsu/editorial...

[b] Because of central bank manipulation, the price of gold had moved inversely to the rise of stocks for almost 20 years and bankers were making easy money on the bet gold would continue its downward spiral.

However, much to the shock of Goldman Sachs and the central bankers, in 1999 gold stopped falling; and, because Goldman Sachs’ short position was so large, Goldman possibly could suffer catastrophic losses.

This is when England’s then Chancellor of the Exchequer, Gordon Brown, on May 8, 1999 announced England would sell over 50 % of its gold reserves, 415 tons of the most precious metal on earth at the very bottom of the market.

The decision to sell England’s gold thereby saved Goldman Sachs and insured the political future of Gordon Brown. Goldman Sachs’ is still in business and Gordon Brown is now the Prime Minister of England—proving that good things come to those who do the bidding of the powerful (whether either outcome was worth 415 tons of England’s gold is questionable) [/b]

I believe shortly before the election there was going to be some sort of official enquiry into why exactly, in the face of advice telling him not to sell the gold, he did just that. Dont know what came of it, quietly brushed under the rug i suppose.