How gold takes the shine off Britain’s trade figures

SkyNews/Ed Conway/09-29-17

Doubt has been cast over one of the longest-standing economic claims in the Brexit debate after a Sky investigation revealed that Britain’s real exports to outside the EU are actually far lower than official figures suggest.

…this number is severely distorted by the flow of gold bullion in and out of London – the world’s major centre for the trade of this precious metal.

…In July alone, the latest month for which trade figures exist, gold accounted for more than a tenth of the value of everything exported by the UK overseas – making it Britain’s top export above cars, engines and pharmaceuticals.

Since the vast majority of this gold is shipped to non-EU countries such as China, Switzerland and India, the upshot of these gold figures is to swell the total amount of goods reported as being shipped outside Europe.

PG View: And it’s worth noting that much of the gold exported to Switzerland is being re-refined into kilo bars and then being sent on to . . . you guessed it, China and India . . .

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