Goldfinger — on the trade scales

How do precious metals affect UK trade statistics?

The Office for National Statistics published trade statistics excluding precious metals. This is the first time the ONS have made this exclusion, because of the high volatility of such trades.

This article considers how excluding trade in precious metals affects UK trade statistics.

Always believe in the gold

National central banks may hold gold as reserves.

Non-monetary gold is gold bullion not owned by central banks. This type of gold makes up most of the commodity group of ‘unspecified goods’. The group includes other types of precious metals which people can trade.

You have the power to know. (Image: Flickr/Terence Wright)

Headline trade statistics include trade in non-monetary gold and other precious metals. This is to ensure international comparability. Guidance and standards come from the International Monetary Fund’s manual (BPM6).

Jonathan Athow (Deputy National Statistician) explains there are two principles.

1. Treated like other commodities

Sales of precious metals are like other commodities. To use Jonathan’s example, imagine someone in the UK sells gold to someone in France. Trade statistics record that gold…