gold bars

[dannyday5821]

i watched about 10mins of a programmed with something to do the UK selling gold bars. Why do we have gold bars? why isnt just all sold off anyway and then save the money in an account or something...?

where does the gold come from? other countries? from our own mineral deposits? do we buy it, then save it as reserve?

[Ethel]

If we sold all our gold reserves for cash we would be in big trouble if the value of the pound fell.

Gold always has a value and is always saleable and tradeable- unlike currency.

Gold cannot rot, or deteriorate.

A lot of gold comes from South Africa, America and Alaska - the UK has very little home mined gold - there is some in Wales. Australia, New Zealand and Peru also have gold mines.

Did you know your money notes say 'I promise to pay the bearer on demand the sum of �5 (or whatever)? That means the note is worth �5 worth of gold.

[Hymie]

Like any commodity, the price of gold is somewhat dependent on supply and demand.

A few years ago, our then chancellor (G. Brown), announced that the UK would be selling a sizable chunk of its gold reserves, (some of the money raised would no doubt go toward the profligate spending of our government).
This announcement had the obvious effect of depressing the market price of gold, since supply was now known to exceed demand (at least in the short term).

By making this announcement, the UK lost a significant amount on this pre-announced sale � all due to our brilliant chancellor, now Primeminister.

[vehelpfulguy]

It is thought our so-called financial expert Gordon Brown cost this country over TWO BILLION POUNDS by selling our gold when the price was low.

In fact the price of gold has gone up and up so it is probably MORE than 2 billion at the moment.

http://www.timesonline.co.uk/tol/news/politics /article1654931.ece

http://news.bbc.co.uk/1/hi/business/7450751.st m

How anyone can think he did a good job as chancellor, he just borrowed and borrowed, and gave away the money, and any idiot can do that.

He has been a disaster for this country.

[kempie]

The 'promise to pay the bearer' printed on banknotes does not indicate in what form the payment should be met but most probably would be coins to the value of...

It definitely would not be paid in gold because Britain left the gold standard in 1931 which broke the link between the Bank of England redemption of notes and the country's gold reserves.

http://www.bankofengland.co.uk/banknotes/about /history.htm

As to gold not rotting or deteriorating, apparently this is not applicable to Yankee Gold...

http://www.coinlink.com/News/gold-silver-bulli on/cracks-showing-in-bank-of-englands-reserve- gold-bars-says-report/

[Ethel]

Kempie - that was the origin of the 'pay the bearer' .

[kempie]

I concur to the origin and in years past banknotes were fully convertible for their face value in gold, or more likely coins which were at that time minted to contain their own face value of gold (or silver or copper). However since Sterling is now a fiat currency the "promise" has changed to that of the BoE ensuring a banknote will retain its face value for all time e.g. a �5 note issued in 1963 (withdrawn from circulation 1973) will be exchanged for a current issue �5 note.