Ross Clark

Ross Clark

Ross Clark is a leader writer and columnist who has written for The Spectator for three decades. He writes on Substack, at Ross on Why?

The problem with investing in gold

The gold price, we keep being told, because investors are seeking a ‘safe haven’. The first part of that sentence is true – from £1100 per ounce at the beginning of this year, gold has surged to £1500 per ounce this week. But are those buying it really doing so because it is ‘safe’ investment? Come off it. It is easy to get on the wrong side of a stock market or property boom, but gold has proved are a far more insidious destroyer of wealth over the decades. Had you fallen for the lustre of gold in 1980, when it was selling for £280 an ounce it would have taken you 25 years to get your money back, in nominal terms. In real terms, the value of every ounce of your gold would have plunged to £98.

Will the speculative vaccine shopping spree ever end?

Somewhere, possibly in the land of big sheds, just off the M1 in Leicestershire, must be a burgeoning NHS surplus store. Its shelves will be groaning with ventilators and testing kits which turned out not to work, surgical gloves, bibs and masks which turned out to be defective – and quite possibly, in months to come, with millions of shots of vaccines which won’t be able to be used. It was announced this morning that the government has signed up for 60 million doses of a vaccine being developed by GSK and Sanofi – although the financial details of the deal were not released. GSK says the vaccine will enter clinical trials this autumn and will – possibly – be ready for manufacture in the second half of 2021.

A second wave? Perhaps, but deaths are still down

'Let’s be absolutely clear about what’s happening in Europe,' the Prime Minister tells us. 'Among some of our European friends, I’m afraid you are starting to see, in some places, the signs of a second wave of the pandemic.'  Really? It rather depends on what graph you're looking at, and over which period. On Saturday, the government consigned Spain to the sin bin – with quarantine for anyone travelling from there to Britain – on the grounds that there has been an uptick in recorded cases. Sure, the number of confirmed cases has risen in the weeks since late June, and – at around 2,000 a day – is running at about a quarter the level it was in at the peak in April.

The growing evidence of a V-shaped recovery

A similar phenomenon is developing with the Covid recession as happened with Brexit. News outlets – the BBC in particular – are choosing to focus on dire economic predictions at the expense of more positive real-world data. Yesterday, we heard no end of it when EY forecast that the economy would not reach its pre-Covid size until the end of 2024, 18 months longer than it had previously forecast. Yet where is the coverage today of the CBI’s distributive trades survey, which suggests that retail sales in July have been pretty much back to where they were a year ago, and that car sales are actually up on last July?

Is Covid immunity fading?

More data emerges on one of the central questions of the Covid-19 epidemic: just how many of us have had the infection and have, as a result, built up some immunity towards it? The question is crucial because it governs whether or not we need to fear a second spike of the epidemic.  It is possible that many people may have effective immunity without the detectable presence of antibodies in their blood In its latest weekly surveillance report, Public Health England (PHE) revises its estimate for the percentage of the English population which is carrying antibodies to SARS-CoV-2, the virus that causes Covid-19. It now says that 6.5 per cent have had the virus, compared with an estimate of 8.5 per cent it made on 4 June. In London, it estimates that 9.

Might Britain’s Covid recovery be V-shaped after all?

Hopes for economic recovery have faded a little of late as Covid-19 cases continue to rack up in many parts of the world. The grand reopening of bars, restaurants and the like has turned into a bit of damp squib, serving to remind everyone how far we remain from normality. Yet today comes a double bill of good news – verging, indeed, on the dramatic. The Office for National Statistics put out its figures for retail sales in June, which turned out to be 13.9 per cent up on those in May. This is way in excess of what economists were expecting – a survey for Reuters showed a consensus of around 8 per cent – and takes retail sales pretty much back to where they were before the crisis struck. Year on year, sales for June were down just 1.

Is the demise of polar bears being exaggerated?

Wouldn’t it be nice if we could debate climate change for five minutes without hearing about polar bears or being subjected to footage of them perched precariously on a melting ice floe? But that is a little too much to expect. Polar bears have become the pin-ups of climate change, the poor creatures who are supposed to jolt us out of thinking about abstract concepts and make us weep that our own selfishness is condemning these magnificent animals to a painful and hungry end. Needless to say, the Guardian and BBC jumped on the opportunity for more polar bear coverage when a paper appeared in the journal Nature Climate Change, predicting that a high carbon emissions scenario ‘will jeopardise the persistence of all but a few high-Arctic subpopulations by 2100.

What we don’t (yet) know about the Oxford vaccine

How excited should we be about the latest news of the Oxford vaccine? At least this time – in contrast to previous updates, which have tended to come via Downing Street briefings – we have a paper in a scientific journal, the Lancet, to go by. The paper reports that 1,077 people took part in the trial and that 90 per cent developed antibodies to the SARS-CoV-2 virus after a single dose of the vaccine. All developed antibodies after a second dose. The trial also tested for adverse side-effects – which were widespread, but all of which were described as ‘mild’ or ‘moderate’. Some patients were given paracetamol along with the vaccine, but of those who were not, 70 per cent reported a sense of fatigue and 68 per cent reported a headache.

Labour’s wealth tax proposal is deeply flawed

Will Labour ever stop pushing for punitive taxation? Not content with gifting the Conservatives an 80 seat majority in December, the supposedly more moderate Labour party under Keir Starmer is already dreaming up ways it can extract large sums from our pockets. Shadow Chancellor Anneliese Dodds floated a ‘wealth tax’ at the weekend, so that the burden of paying for the Covid 19 crisis might fall upon the ‘very best off people’. Except it won’t be the very best-off people who get whacked by a wealth tax, as she should surely know. The highly mobile global super rich wouldn’t hang around for five minutes after a Labour government announced a wealth tax – any more than they did in France when Francoise Hollande introduced the same thing.

The next culture war will be over climate change

It is steadily becoming clear where the woke brigade will go once the current moral panic over racism has run its course (which can’t be long, following the news that London estate agents have stopped using the term ‘master bedroom’ to avoid its connotations with slavery). A week ago Andrew Willshire wrote here of how the activist group Hope Not Hate has now decided that climate change ‘denialism’ is now a hate crime. Now comes another sign that climate change is becoming the next woke battleground. Earlier this week, an environmental campaigner, Michael Shellenberger wrote a mea culpa on the website of Forbes.com.

Did Harry and Meghan’s wedding really raise £1bn in revenue?

Without going into the ins and outs of the Duke and Duchess of Sussex’s withdrawal from royal life, still less the merits of the Duchess’s privacy case against the Mail on Sunday, a claim made by her lawyers this morning cannot be allowed to pass without comment. They claim: ‘This contribution of public funds towards crowd security was far outweighed by the tourism revenue of over £1 billion that was generated from the royal wedding of the Duke and Duchess of Sussex which went directly into the public purse.’ Should we really be thankful to the Duke of Duchess of Sussex for stuffing the UK’s coffers as a result of tourists flocking here for the pair’s wedding or being inspired to come here after watching the event on TV?

What we still don’t know about Covid in Leicester

Just why has Leicester been locked down, its economy placed back in the deep freeze and many more of its citizens condemned to lose their jobs? Since the announcement, the country has gone back into panic mode. Leicester, according to much reporting, is in the midst of a second spike – and is surely just the first of many towns and cities that will have to be placed back in lockdown. Listeners to the Today programme on Wednesday morning, in particular, will have been left in no two minds: we are in the foothills of a resurgence which could overwhelm the whole country. Finally, on Wednesday evening, Public Health England published the full data for Leicester – along with a preliminary report from its rapid investigation team. And what does it conclude?

A Huawei U-turn must now be inevitable

The declaration by US authorities that Huawei and fellow Chinese comms firm ZTE are national security threats is likely to have a clear outcome. It will knock the UK government further down the path it already seemed to be travelling: reversing its decision to allow Huawei to play a role in Britain’s 5G communications network.  Boris Johnson’s government surprised many earlier this year by approving Huawei to build what it called ‘non-core’ parts of the network, in spite of US threats to withhold the exchange of intelligence if Huawei was allowed to be involved. He made the decision in spite of warnings from Britain’s own security services.

Should we be afraid of this new swine flu?

Imagine if a vaccine for Covid-19 was approved tomorrow, and that within weeks we had all been vaccinated. Would life be able to go quickly back more or less to normal? Don’t bet on it. The long shadow of Covid-19 will mean mass panic every time another novel virus comes to light. Indeed, news of such a virus comes today in a paper by a team from China’s Agricultural University published in the Proceedings of the National Academy of Sciences. They say they have identified a flu virus with pandemic potential, which is circulating in the pig population and has already infected significant numbers of humans who work with pigs. Crucially, however, it has not yet demonstrated any ability to be passed from human to human.

Is Covid immunity more common than we think?

Antibody tests on random samples of the population have so far shown much lower levels of general infection than the government’s scientific advisers claimed would be necessary to attain ‘herd immunity’. In London, for example, tests have shown that 17 per cent of the population have antibodies to Sars-CoV-2, the virus that causes Covid-19. In New York, the figure is 21 per cent. At the beginning of this crisis, on the other hand, Sir Patrick Vallance, the chief scientific adviser, suggested that at least 60 per cent of the population would have to be infected in order to achieve herd immunity. It provides a possible explanation for why the Covid-19 epidemic seems to have died away in many places But are antibodies the whole story?

Was Covid with us long before anyone realised?

One of the mysteries of the Covid-19 crisis is how the disease seemed to bubble up out of nowhere in Italy at the end of February – at a time when it seemed to be under control in China. In spite of local quarantines and the isolation of individual patients, the epidemic quickly took hold. We have subsequently had reports of patients infected all over Europe who were possibly infected in mid-January.  The earliest sample appears a fortnight before the disease was even identified in China But now a study has emerged that suggests the disease was already circulating in Northern Italy before Christmas.

Isn’t it time Sacha Baron Cohen got cancelled?

How helpful of the comedian Sacha Baron Cohen to reveal that there are two or three people in America who are happy to join in a sing-along containing the line 'Liberals, what we gonna do? Inject them with the Wuhan flu.' Trouble is, it really only was two or three people. If Baron Cohen really was trying to expose the American right as a violent mob, his infiltration of a rally by the Washington Three Percenters, described as a Trump-supporting, pro-gun group, was a miserable failure. Baron Cohen’s wheeze was to pose as a bluegrass singer and to take to the stage and try to whip up the crowd by duping them into singing songs with lyrics that would identify them as hate-filled right-wing lunatics.

The European Space Agency has just chosen Leicester to host its startup hub. Why has no one reported that?

Imagine if a European agency had just announced that it was to close a site in the Midlands, withdrawing from Britain and taking jobs of scientists with it. It isn’t hard to work out where that would feature on BBC news – up top. It would be presented as another cost of Brexit, another result of the foolish decision the country made in 2016 to leave the EU. Interviewees would be dredged up to tell us we had condemned ourselves us to become a deskilled economy. News outlets seem so obsessed with woke and culture war issues that we don’t get to learn about important pieces of investment Now imagine that a European agency had actually just announced that it is to open a new base in the Midlands.

The outrage over Bournemouth beach contains a grain of deceit

The Covidiots are at it again – crowding onto beaches in flagrant breach of lockdown rules, treating the pandemic as if it were an extended bank holiday. Pictures of crowded beaches on Thursday inspired Chris Whitty to tweet that Covid-19 is ‘still in general circulation’, and worked Matt Hancock into such a froth that he threatened to close the beaches. But are we really suffering a mass outbreak of irresponsibility or just the tyranny of the telephoto lens? Take a quick look at these two photos – and then take a more careful look.

Are we heading for hyper-inflation or deflation?

Will Britain turn into Zimbabwe or Japan? In other words, will the fallout from the economic crisis precipitated by Covid 19 lead to hyper-inflation or to deflation? Are we going back to the 1970s – or to a strange world of which no living Briton has any recollection? Or, more graphically, will it be savers and bond-holders who get ripped off to pay to bills of the crisis – or do borrowers face being buried by their debts? In May, the Consumer Prices Index (CPI) fell to an annualised 0.5 per cent. A fall was expected thanks to plunging oil prices. But many people fear it will only be temporary as the economy begins a fraught recovery.