HC Deb 19 November 1973 vol 864 cc340-1W
Mr. Bruce-Gardyne

asked the Chancellor of the Exchanger what was the proportion of United Kingdom currency reserves held in gold at the end of 1963, 1970, 1971, and at the latest available date, respectively; what is the current dollar value of these gold holdings; and what would be the dollar value of such holdings if they represented the same proportion of the reserves as in 1963, reckoned at the free market price for gold.

Mr. Nott

The gold proportion of the United Kingdom official reserves at end 1963, 1970, 1971 and at end June 1973 was respectively 93 per cent., 48 per cent., 13 per cent. and 13 per cent.

At the official gold price of $42.2222 per fine ounce the dollar value of the end June 1973 gold stock was $901 million. On the hypothetical assumption that it would have been feasible to purchase gold at the official price, a current holding at the same proportionate level as in 1963 would be worth $13,903 million valued at a free market price of $90 per fine ounce. But such an assumption is unrealistic.