Now that gold is losing value, hopefully we can put the "Brown's bottom" myth to bed

Should the Chancellor really be a day trader?

The gold market appears to have well and truly peaked. The Perth mint puts the all-time high way back on 6 September 2011, when the bid price per ounce was $1915.55. It's now plummeted to just over $1600, and appears to be on a steady downward trajectory.

None of which will be much consolation to Gordon Brown, who famously sold most of Britain's gold reserves near the bottom of the market, between 1999 and 2002. He may have made $3.5bn from the sale, at an average price of $270; but if he'd sold on to the same reserves and sold them the day before the 2010 election, he'd have made the country just over $15bn. And he is never allowed to forget it; cries of "Brown sold the gold" are common even today.

But it's unfair to hold Brown to standards only visible in hindsight. After all, he's not magic. So what critics are really saying is "Brown should have known beforehand that gold was a good investment". And if we're holding Brown to that criticism, we have to hold his Osborne to the same standard.

When the chancellor took power, gold was selling for $1170; 18 months later, it had hit its peak. If Osborne had bought back the quantity of gold Brown sold, he'd have had to spend $15bn; but then, 18 months later, he'd have made a profit of $9.7bn, selling the gold for $24bn. Even if he'd just bought back the value of what Brown sold, spending $3.5bn on gold in 2010, he could have sold it for $5.7bn, a $2.2bn profit.

Brown didn't lose money in 2003; he just failed to make money in the years after. Osborne didn't lose money in 2010; he just failed to make money in the 18 months after. Unless we want to punish all our chancellors for not moonlighting as day traders, holding them liable for the money they didn't make is nonsensical.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Appreciate the full horror of Nigel Farage's pro-Trump speech

The former Ukip leader has appeared at a Donald Trump rally. It went exactly as you would expect.

It is with a heavy heart that I must announce Nigel Farage is at it again.

The on-again, off-again Ukip leader and current Member of the European Parliament has appeared at a Donald Trump rally to lend his support to the presidential candidate.

It was, predictably, distressing.

Farage started by telling his American audience why they, like he, should be positive.

"I come to you from the United Kingdom"

Okay, good start. Undeniably true.

"– with a message of hope –

Again, probably quite true.

Image: Clearly hopeful (Wikipedia Screenshot)

– and optimism.”

Ah.

Image: Nigel Farage in front of a poster showing immigrants who are definitely not European (Getty)

He continues: “If the little people, if the real people–”

Wait, what?

Why is Trump nodding sagely at this?

The little people?

Image: It's a plane with the name Trump on it (Wikimedia Commons)

THE LITTLE PEOPLE?

Image: It's the word Trump on the side of a skyscraper I can't cope with this (Pixel)

THE ONLY LITTLE PERSON CLOSE TO TRUMP IS RIDING A MASSIVE STUFFED LION

Image: I don't even know what to tell you. It's Trump and his wife and a child riding a stuffed lion. 

IN A PENTHOUSE

A PENTHOUSE WHICH LOOKS LIKE LIBERACE WAS LET LOOSE WITH THE GILT ON DAY FIVE OF A PARTICULARLY BAD BENDER

Image: So much gold. Just gold, everywhere.

HIS WIFE HAS SO MANY BAGS SHE HAS TO EMPLOY A BAG MAN TO CARRY THEM

Image: I did not even know there were so many styles of Louis Vuitton, and my dentists has a lot of old copies of Vogue.

Anyway. Back to Farage, who is telling the little people that they can win "against the forces of global corporatism".

 

Image: Aaaaarggghhhh (Wikipedia Screenshot)

Ugh. Okay. What next? Oh god, he's telling them they can have a Brexit moment.

“... you can beat Washington...”

“... if enough decent people...”

“...are prepared to stand up against the establishment”

Image: A screenshot from Donald Trump's Wikipedia page.

I think I need a lie down.

Watch the full clip here:

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland