The Poseidon bubble was a stock market bubble in which the price of Australian mining shares soared in late 1969, and then crashed in early 1970.
It was triggered by the Poseidon NL company’s discovery of a promising site for nickel mining in September 1969.
In the late 1960s, nickel was in high demand due to the Vietnam War, and there was a shortage of supply due to industrial action against the major Canadian supplier.
In September 1969, the mining company Poseidon NL made a major nickel discovery at Windarra in the Shire of Laverton, Western Australia.
In early September their shares had been trading at $0.80, but as information about the discovery was released, the price rose until it was trading at $12.30 on October 1.
After this, the price continued to climb due to speculation.
Poseidon shares peaked at a high of $280 in February 1970, and fell rapidly thereafter.
In 1969 I was 13yrs old, and I remember my father coming home after work with two of his friends for a few drinks. They were all pretty excited.
The reason they were so excited was because one of these men was my father’s best friend and this man was a stockbroker on the Adelaide Stock Exchange.
This stockbroker had managed to get my father some shares in Poseidon NL at around a $1 per share and they had shot up to $10 per share that day.
This memory still has the atmosphere attached to it.
As I am writing I can still feel the excitement of their conversation and exuberant behaviour.
They were involved in one of the biggest stock market bubbles in history.
All over Australia people were becoming millionaires in a month and some even in a week.
So, it is possible to become a millionaire in a month, just not probable.
All that has to happen is, for you to be in the right place at the right time doing the right thing and knowing the right people.
That share market opportunity came along once in a life time.
Please God… do not let me miss any opportunities that are coming my way.
Open my eyes to see what I need to see, to hear what I need to hear, to understand what I need to understand and to meet the people I need to meet.