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Yesterday's heroes. Peter Costello's sum benefit to the Australian nation would have to be a huge negative taking into consideration this act in 1997. I hope it haunts him, his net worth to Australia is literally negative. He had some advisory help though in Treasury and the RBA . I guess it made him look good in the short term as he delivered his budget. Thoroughly modern. Fkg intellectuals can get it so wrong.

In November 1997 the then Treasurer, Peter Costello, shocked some people when he announced he'd signed off on the sale of $2 billion worth of Australian bullion. On the day he announced the sale the price was around $US306.00 an ounce. At the time, according to Mr Costello, gold "no longer plays a significant role in the international financial system".

Three days after the bullion was sold Australian gold shares slumped 16 per cent. With gold languishing there were more than a few people within government and the Reserve Bank congratulating themselves on such a prescient sell off.

But no-one else seemed to be selling, certainly not the US, and Robert Champion de Crespigny at the time expressed concern about Australia's ambitious move. The then executive chairman of Normandy Mining, Australia's largest gold mining group said:

"I think the Reserve bank has handled this extremely clumsily". Gold, he said, had a future if you took a long term view.

So here it was 1997 and Australia had sold two thirds of its gold assets in a single day, and sold into a buyer's market.

While the sale helped pay down debts, the deal was to cost Australia billions of dollars in the long run. But at the time people were lining up to congratulate the Treasurer.

Bill Shields who was with the Reserve Bank and who went on to become Macquarie Bank's chief economist seemed to echo the Federal Treasurer's words. He said he thought the gold price would remain under pressure and depending on how supply responded it could fall lower.

Gold, he said "no longer has a role in the monetary system and with low inflation it is an unattractive investment relative to interest bearing securities and equities".

While that sentiment was certainly shared in the plush offices of bankers in Australia, it wasn't on the minds of China's money men.

Two years after Australia's Government sold off two thirds of the nation's bullion, China made a startling admission. Over six years it had quietly bought 454 tonnes of gold (presumably some of it was Australia's)."

[URL unfurl="true"]https://www.abc.net.au/news/2010-03-05/worth-its-weight-in-gold/351864[/URL]

<blockquote data-quote="finicky" data-source="post: 1288058" data-attributes="member: 2104">Yesterday&#039;s heroes. Peter Costello&#039;s sum benefit to the Australian nation would have to be a huge negative taking into consideration this act in 1997. I hope it haunts him, his net worth to Australia is literally negative. He had some advisory help though in Treasury and the RBA . I guess it made him look good in the short term as he delivered his budget. Thoroughly modern. Fkg intellectuals can get it so wrong.In November 1997 the then Treasurer, Peter Costello, shocked some people when he announced he&#039;d signed off on the sale of $2 billion worth of Australian bullion. On the day he announced the sale the price was around $US306.00 an ounce. At the time, according to Mr Costello, gold &quot;no longer plays a significant role in the international financial system&quot;.Three days after the bullion was sold Australian gold shares slumped 16 per cent. With gold languishing there were more than a few people within government and the Reserve Bank congratulating themselves on such a prescient sell off.But no-one else seemed to be selling, certainly not the US, and Robert Champion de Crespigny at the time expressed concern about Australia&#039;s ambitious move. The then executive chairman of Normandy Mining, Australia&#039;s largest gold mining group said:&quot;I think the Reserve bank has handled this extremely clumsily&quot;. Gold, he said, had a future if you took a long term view.So here it was 1997 and Australia had sold two thirds of its gold assets in a single day, and sold into a buyer&#039;s market.While the sale helped pay down debts, the deal was to cost Australia billions of dollars in the long run. But at the time people were lining up to congratulate the Treasurer.Bill Shields who was with the Reserve Bank and who went on to become Macquarie Bank&#039;s chief economist seemed to echo the Federal Treasurer&#039;s words. He said he thought the gold price would remain under pressure and depending on how supply responded it could fall lower.Gold, he said &quot;no longer has a role in the monetary system and with low inflation it is an unattractive investment relative to interest bearing securities and equities&quot;.While that sentiment was certainly shared in the plush offices of bankers in Australia, it wasn&#039;t on the minds of China&#039;s money men.Two years after Australia&#039;s Government sold off two thirds of the nation&#039;s bullion, China made a startling admission. Over six years it had quietly bought 454 tonnes of gold (presumably some of it was Australia&#039;s).&quot;[URL unfurl=&quot;true&quot;]https://www.abc.net.au/news/2010-03-05/worth-its-weight-in-gold/351864[/URL]</blockquote>

[QUOTE="finicky, post: 1288058, member: 2104"] Yesterday's heroes. Peter Costello's sum benefit to the Australian nation would have to be a huge negative taking into consideration this act in 1997. I hope it haunts him, his net worth to Australia is literally negative. He had some advisory help though in Treasury and the RBA . I guess it made him look good in the short term as he delivered his budget. Thoroughly modern. Fkg intellectuals can get it so wrong. In November 1997 the then [B]Treasurer, Peter Costello[/B], shocked some people when he announced he'd signed off on the sale of $2 billion worth of Australian bullion. On the day he announced the sale the price was around $US306.00 an ounce. At the time, according to Mr Costello, [B]gold "no longer plays a significant role in the international financial system".[/B] Three days after the bullion was sold Australian gold shares slumped 16 per cent. With gold languishing there were more than a few people within government and the Reserve Bank congratulating themselves on such a prescient sell off. But no-one else seemed to be selling, certainly not the US, and Robert Champion de Crespigny at the time expressed concern about Australia's ambitious move. The then executive chairman of Normandy Mining, Australia's largest gold mining group said: "I think the Reserve bank has handled this extremely clumsily". Gold, he said, had a future if you took a long term view. So here it was 1997 and Australia had sold two thirds of its gold assets in a single day, and sold into a buyer's market. While the sale helped pay down debts, the deal was to cost Australia billions of dollars in the long run. But at the time people were lining up to congratulate the Treasurer. [B]Bill Shields[/B] who was with the [B]Reserve Bank[/B] and who went on to become Macquarie Bank's chief economist seemed to echo the Federal Treasurer's words. He said he thought the gold price would remain under pressure and depending on how supply responded it could fall lower. Gold, he said "no longer has a role in the monetary system and with low inflation it is an unattractive investment relative to interest bearing securities and equities". While that sentiment was certainly shared in the plush offices of bankers in Australia, it wasn't on the minds of [B]China's money men[/B]. Two years after Australia's Government sold off two thirds of the nation's bullion, China made a startling admission. Over six years it had quietly bought 454 tonnes of gold (presumably some of it was Australia's)." [URL unfurl="true"]https://www.abc.net.au/news/2010-03-05/worth-its-weight-in-gold/351864[/URL] [/QUOTE]

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