UK's Controversial Gold Sales in 1999 Still Lamented as Costly Blunder

In 1999, Gordon Brown announced the UK would sell over half its gold reserves to diversify reserves. This was done at the bottom of the gold market, costing billions in lost profits.

The announcement stunned markets and drove the gold price down further before the sales began. The UK sold 395 tonnes of gold between 1999-2002 for $3.5 billion. That gold is now worth $26.6 billion.

The poor handling damaged the UK's reputation and prompted other countries to defend holding gold. New rules were introduced to coordinate central bank gold sales.

The sale had little economic impact domestically as proceeds were reinvested in reserves. However, it's viewed as an embarrassing blunder that eroded UK influence.

With gold now at record highs, the likelihood of the UK buying or selling more gold is virtually zero as it would signal financial worries or excess.