Remind me, what did gold do during the Credit crunch?

[Mega]

I know the market crashed, what did Gold do?
mike

[charliebrown]

Re: Remind me, what did gold do during the Credit crunch?

Bartaroo or Finster can do a better job than I can, but I will give it a try.

The answer to your question really depends upon when the financial crisis/crash started and when it ended.

I consider the crash starting on August 8th 2007. On that day I was reading a web post somewhere that stated that the secondary market for mortgage derivatives lost a bid. I can't remember which derivative products it was but I have a big red X on a calendar in my cube on that date. That was also the day I dumped half of my stock. I don't have fancy access to data sources, so I used GLD, IEF, and DBC as proxies for those prices. I know a lot of people poo-poo these, but in some
sense as a small retail investor, it might be all you have access too to hold these investment classes. I will pick the end of the panic as March of 2009,
the stock market hit bottom, and treasury rates started climbing again.

..........Aug 2007 . March 2009 . %gain
Gold .... 66.10 .... 90.0 ...... +36% Note: Nov of 2008, GLD hit 71.1, but that is still up from Aug 2007.
Treas ... 82.71 .... 96.59 ..... +44%
Stocks .. 1433 ..... 697 ....... -51%
Commods . 26.86 .... 18.15 ..... -32%
Oil wti . 72 ....... 48 ........ -33%

Sorry, I can't find a font that does not get mangled.

[*T*]

Re: Remind me, what did gold do during the Credit crunch?

In the panic, it got KILLED!
Then recovered faster than everything else.

[globaleconomicollaps]

Re: Remind me, what did gold do during the Credit crunch?

for your viewing pleasure:
http://finance.yahoo.com/echarts?s=GLD+Interactive#symbol=gld;range=2007010 3,20100101;compare=tlt+^gspc;indicator=volume;char ttype=area;crosshair=on;ohlcvalues=0;logscale=off; source=undefined;