Jan. 6 (Bloomberg) -- Gold sold by the U.K. in the four years through 2002 would be worth an extra $7 billion at recent prices, the government said.

The U.K. sold 395 tons of the metal in the period for about $3.5 billion, Ian Pearson, economic secretary to the Treasury, said in a Dec. 18 written response to government questions published on a parliamentary Web site.

The sales “reflected a prudent decision to reduce over- exposure to a single asset in the net reserves portfolio,” he said. Based on the morning “fixing” in London on Dec. 15, the sold reserves would be worth about $10.5 billion, he said.

Gold was valued at $844 an ounce in the morning “fixing” in London today. At that price, 395 tons would be worth $10.7 billion.

The government response was earlier reported by political commentator Iain Dale on his Web site.

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

Last Updated: January 6, 2009 10:48 EST