A foxy Chancellor knows many things, but a hedgehog learns the hard way

Tutti possono sbagliare: we can all make mistakes, as the hedgehog observed, getting down from the hearth-brush. Whether our prickly Chancellor is a student of Italian proverbs, I cannot say, but he could learn from this one. In the five and half years since he auctioned half the nation’s gold reserves, the price of gold has doubled. He was bid rather less than $280 an ounce, the hammer fell, and he put the proceeds into dollars, yen and euros — but none of them has been as good as gold. Looking on as the price soared above $560, I could only reflect on the timing that caused him to sell at the lowest price on offer for two decades. He was, after all, under no pressure. Did he want to take a clever initiative, to cut a dash and to overshadow his neighbour in Downing Street? Did he just think that gold was old-fashioned? It has certainly been around for long enough.