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REMEMBER Bear Stearns? You
know, that quaint little investment bank which blew up 6 months before Lehmans and a full 12 months before quantitative easing
began.
Here's a reminder...
You can see the
exploding bank right there...that little spike just above $1000 per ounce in
the gold price...three years ago to the very day.
Here at BullionVault, we'd already had the world's very first Thousand Dollar Gold Trade four days earlier, when gold first tip-toed up to that level. A
Canadian user, seeing the wholesale-gold "spot" price nearing four
digits, had offered and sold his five ounces of gold – stored securely
in Zurich, Switzerland – to a Hong Kong investment fund for $1000 a pop.
Come the Monday, and as
Bear was sold to J.P.Morgan for 7 cents on the
Dollar, gold then hit what would prove an 18-month top. Which
made our Canadian client look awfully smart, not least as everything bar the
Dollar and Japanese Yen tumbled into the black hole marked "Lehmans".
Selling what had
doubled in barely two years also looked smart...and might still today. Gold's
rate of ascent since 17 March 2008 has been better than stocks, bonds and
pretty much everything else (except silver). But at 36% in the last 3 years,
it would seem to have slowed.
Whatever slow and
steady trend gold began rising on a decade ago, however, it doesn't seem to
have hit its true peak just yet.
Adrian Ash
Head of
Research
Bullionvault.com
You can also Receive your first gram of Gold free by opening an
account with Bullion Vault : Click here.
City correspondent for The Daily Reckoning in London, Adrian Ash is
head of research at BullionVault.com – giving you direct access to investment
gold, vaulted in Zurich, on $3 spreads and 0.8% dealing fees.
Please Note: This article is
to inform your thinking, not lead it. Only you can decide the best place for
your money, and any decision you make will put your money at risk.
Information or data included here may have already been overtaken by events
– and must be verified elsewhere – should you choose to act on
it.
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