Sparky
27th February 2012, 06:23 PM
Took a look how gold and silver reacted to Y2K, which was a potential panic spike identified to a single day, much like the upcoming December 21, 2012.
Very curious. Gold opened 1999 at $287. It drifted down all year, reaching its generational low of $252 on July 20, 1999, a price it had not seen for more than 20 years.
On September 21, after wandering in a microscopic $5 range for more than a month around $257, it abruptly turned upward. On October 5, it hit an interday high of $336, which was a 32% gain in about 10 trading days.
And then that was it. It drifted below $300 by the end of the month, and closed the year at $290, virtually flat for the year! It would take more than 3 years to reach $336 again. For comparison, during the 10-day spike, silver went from $5.11 to $5.71, a gain of 11%, or about 1/3 that of gold, and not even reaching the high for the year that was set back in February.
http://www.kitco.com/LFgif/au1999.gif
http://www.kitco.com/LFgif/ag1999.gif
Very curious. Gold opened 1999 at $287. It drifted down all year, reaching its generational low of $252 on July 20, 1999, a price it had not seen for more than 20 years.
On September 21, after wandering in a microscopic $5 range for more than a month around $257, it abruptly turned upward. On October 5, it hit an interday high of $336, which was a 32% gain in about 10 trading days.
And then that was it. It drifted below $300 by the end of the month, and closed the year at $290, virtually flat for the year! It would take more than 3 years to reach $336 again. For comparison, during the 10-day spike, silver went from $5.11 to $5.71, a gain of 11%, or about 1/3 that of gold, and not even reaching the high for the year that was set back in February.
http://www.kitco.com/LFgif/au1999.gif
http://www.kitco.com/LFgif/ag1999.gif