Australia’s gold bullion production has been in decline since 1997. I and many others think that Peter Costello the then Federal Treasurer started the Australian gold industry’s decline when he orchestrated 2/3 of Australia’s gold reserve in 1997. Following his action there was a massive decline in the gold producers confidence both here in Australia and overseas. To make it worse he sold the gold for around $330 and that has cost the Australian people around $5 billion dollars… an incredible act of economic vandalism that destroyed Australia’s wealth and set the skids under Australia’s third largest export earner….
P. Costello actions might have been precipitated or influenced by Gordon Brown who sold 400 tons of gold (67% of the UK’s reserves) for $275 in April 1997. Another act seen widely as fiscal folly. But whatever caused Mr. Costello to burn Australia’s gold industry he will be remembered by many in the mining industry as an idiot.
Read: Gordon Brown’s sale Folly by the Daily Reckoning Australia and a recent article: Gold sell-off proves to be expensive misreading 10/1/09< in The West Australian that examines Costello’s role.
Australia = yellow