ETF Trading and Investing Strategies (Collection)

Chapter 10. The Luster of Gold and Crude

In the late 1990s, when people jumped into technology stocks, one of the most valued and safest investments for investors—gold—got no respect. In fact, by June 1999, the world’s central banks were dumping gold as fast as they could, heeding the advice of a noteworthy economist who called the yellow metal a “barbaric relic.” This unloading from banks brought the price of gold to a low of $252.90 per ounce on June 21, 1999. It reflected the worst gold market in almost 30 years.

That depression didn’t last long, though. Driven back up by the aftermath of the September 11 terror attacks, the “war on terror,” and volatile equity markets since the collapse of the dotcom boom in 2000, the price of gold ...