In 1997 the Reserve Bank of Australia, showing all the short-sightedness that we have come to expect from the banking, Investment and economics professions in recent years, sold most of its gold reserves. It has subsequently sought to justify that decision on the grounds of gold's poor performance in recent years, the need to diversify its investments, and the money it made on the sale. No doubt the bank, like most other central authorities piled into US dollars in the belief, once again based on all too typical myopia, that this currency was somehow different to all that had gone before it, and that its strength would last forever With the US dollar now in decline and gold back over 400 US dollars, the Reserve Bank ought to be kicking itself for its 1997 call.
NSTL
