> what's it been 5-6 years now?
A little over 4 years. LTCM fell apart during the summer and fall of 1998, followed by the Ashanti and Cambior messes that eventually led to the extremely temporary gold spike of September 1999. We went from the summer of 1999 $250 low to $325, then right back down to test $250 again in early 2001.
goldsheetlinks.com
Markets often tend to work themselves out over time, with occassional extreme blips. The huge decline in interest rates made forward sales less economically attractive, but I guess September 1999 was a close to a bell ringing to signal the change. After selling forward 445mt in 1999, miners covered 15mt in 2000, 147mt in 2001, and 342mt in 2002.
It makes basic economic sense, although self-proclaimed experts who threw major hissy fits will rewrite history and claim the credit. Of course these are the same folks who were bullish on gold in 1998 at $300, and their clients (victims) now have 20% returns over 6 years (3% per annum, less subscriptions fees paid, and suggested investments that went bankrupt in the interim)
Meanwhile, I'll stick to my story: I did not post a gold investment portfolio on SI until December 2000 (was trading only prior) and said to sell it in June 2002 (have only been trading only since) |
