The year 2010 has brought an incontestable desire to buy, own and invest in gold. Not long ago gold wasn’t considered to be the best investment strategy but people have now realized that things have changed.
Back in the 1990s Australia thought that gold was of no important anymore, that it was an old hat. They considered that the sophisticated financial system had moved on and gold is no longer appealing.
Back in 1997 the Australian Treasurer, Peter Costello decided to sell 2 billion dollars worth of gold bullion. This was about two thirds of the Australian gold reserves. Mr. Costello believed at that time that gold is no longer relevant in the financial system.
Some were congratulating Costello especially because three days after Australia sold its gold the price went down. On the other hand, the executive chairman of the Normandy Mining, Australia’s largest gold mining group, thought that the whole affair was careless and that the consequences were in shades of gray.
This move helped to pay a lot of debt but in the long run it costed Australia billions of dollars. In the meanwhile, China was making her own moves towards a better and profitable future. While Australia was selling a big part of its gold, China was buying intensely but not saying a word. But in 1999 the biggest country in the world broke the silence and said that it had bought over the past six years, 454 tons of gold. The world was shocked, Australia even more because presumably some of the gold bought by China was Australian.
The Australian move wasn’t really the best move one country could make, especially because the Australian Treasurer didn’t take into consideration the probable and possible political and financial times.
The reality is that this is the time to invest in gold, try not make the same mistake that other have made and that have caused them a great deal of sorrow. Invest in gold now and you will see that it will be the best investment you could make. Or at least so do the Chinese people think.