• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 5 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 44 mins So the President is on that Hydroxy
  • 42 mins Russia loses its chance to capture the EU gas market
  • 2 hours 60 mph electric mopeds
  • 3 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 13 hours Payback Time: Republican Senators turn the tables on Democrats. The difference is the Republican investigations are legit.
  • 2 hours Why 2030-Isn.t-The-Magic-Year-For-Electric-Vehicles
  • 3 hours Monetary and Fiscal Policies in Times of Large Debt:
  • 16 hours Iran's first oil tanker has arrived near Venezuela
  • 41 mins Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 6 hours DEFIANCE – There are More of Us Than Them
  • 10 hours Let’s Try This....
  • 10 hours China to Impose Dictatorship on Hong Kong
Tanzania Wages War Against Gold Miners

Tanzania Wages War Against Gold Miners

Tanzania’s national government is stepping…

Experts: Expect A Wipeout For South African Miners

Experts: Expect A Wipeout For South African Miners

The downturn in South African…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

The Worst Trade of All Time

One of the great asset management blunders of all time has to be the EC’s decision to sell its gold reserves in the wake of the launch of the Euro in 1998. The decision led to the fairly rapid sale of 3,800 tons of the yellow metal at an average price of $280/ounce, reaping about $56 billion, according to the Financial Times.

Today with gold at $1,500/ounce, the stash would be $300 billion. On top of this, the Swiss National Bank is poorer by $70 billion, after offloading 1,550 tons of the barbaric relic. The large scale, indiscriminate selling depressed gold prices in the early part of this decade. It is a classic example of what happens when bureaucrats take over the money management business, ditching the best performing investment on the eve of a long term bull market. The funds raised were largely placed in poorly performing national Eurobonds.

Where did all that gold go? To hedge funds, gold bugs, and inflationistas of many stripes, despite the fact that long dreaded price appreciation never showed.  The good news for gold bugs is that these reserves are largely drawn down now, and future selling will trail off in the years ahead. The shrinking supply can only be positive for prices.

Gold Price

By. Mad Hedge Fund Trader


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News