Gold Seems To Be Losing Its Glitter
Gold prices have plunged the lowest since 1980, as per a report. Along with gold, the other global stocks also showed a poor performance by sliding down the most since June last year.
Online, April 18, 2013 (Newswire.com) - Canada: Gold prices have plunged the lowest since 1980, as per a report. Along with gold, the other global stocks also showed a poor performance by sliding down the most since June last year. Consequently, yen and dollar showed a rise against their major counterparts.
The fallout continues
More than 20 raw materials reported a drop in the price by 2.3% whereas tumbling story of silver reported a reduction in prices by 13%. The prices of oil and copper also performed non-appreciating.
The downfall of gold prices
Even on Monday, the price of gold experienced a reduction of another $125 per ounce and this is reported to be the biggest loss in a day in the past few decades. In fact, since 1983, this loss of 9% is the biggest and has certainly created a history. The loss on Friday was half of it. Silver too has suffered along with gold by reporting a plunge of 11%.
The move of Investors
People are correlating the loss of gold sheen with the drop of oil prices in 1980. Even now, the investors who treated gold as security and protection against inflation are surprised to see the downfall.
The possible pressure
Robert Richardson a Senior Executive and Officer at Canadian broker-dealer W.D.Latimer Co.Ltd. Says, "The pressure from proposed sale of Cyprus Gold could be one of the factors".
Another possible reason could be the announcement from Fed officials planning to wind up their bond purchases.
The loss continued after the breaking news of two explosions hitting the Boston marathon on Monday. Consequently, the metal prices went further down in the later part of the day.
The past performance
The performance of gold has been the most disheartening in the last decade. In fact, the prices kept appreciating in the last 12 years. The record high price was reported to be $1,920.30 set in September of 2011. And now the same is almost half of the highest price, ever since gold has entered the bear market.
The rush of liquidation
David Govett, head of precious metals Marex Spectron, London says, "This is a market that has only got the intention of coming out."
The fall in the prices gave reason for the investors to come out of the gold investment in the speculation of the same performing even wisely in future.
As a result Canada's Barrick Gold Corp, the largest gold producer in the world showed a slide of 10% in the gold prices.
The total holding at the world's major bullion gold-backed ETF fell down to its lowest in compared to the same in early months of 2012. Gold ETF has shown a record outflow in a month.
An opportunity to make purchases
Many experts ask the investors to refer back to the situation in 2008 when people thought of no reason to make an investment in gold. Since the prices have plunged so the expert advice is to buy as much gold as possible.
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