Gold price takes biggest one-day drop since 1983

[Omaha Steve]

This discussion thread was locked as off-topic by maddezmom (a host of the Latest Breaking News forum).

Source: CBS

NEW YORK Gold had its biggest one-day drop since 1983 on Monday as a selling frenzy that began last week picked up speed.

The price of gold plunged $140.30 to $1,361.10 an ounce, a decline of 9 percent. The metal has dropped $200 an ounce, or nearly 13 percent, in the last two trading days. It's the lowest price since February 2011.

The sell-off started Friday when the government reported a drop in inflation. Investors often buy gold when they're fearful of rising prices and sell it when they see inflation ebbing.

A proposal last week that Cyprus sell some of its gold reserves to support its banks also spooked investors, leading them to worry that Spain, Italy and other weak European countries might flood the market just as demand for the metal is weakening.

FULL story at link.


Read more: http://www.cbsnews.com/8301-34227_162-57579714/gold-price-takes-biggest-one-day-drop-since-1983/

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Price of gold in freefall
Gold - the beginning of the plunge?

[elleng]

1. Gold has been dropping for some time, Steve.

[Baitball Blogger]

2. It peaked around September 2011 at 2000 an ounce.

[Tender to the Bone]

3. Two days, actually

It's been down over $250 since Friday morning.

[Warpy]

4. i guess all the Beckerheads are slowly starting to realize

they were lied to about the coming Weimar Republic style inflation. They probably still slavishly tune in to Beck every day, though.

Spot market crude oil futures are also falling off a cliff right now.

It makes me wonder just what's going on in the upper reaches of institutional finance.

[LiberalFighter]

7. Hope Glenn and his nutbags lose big time.

[reformist2]

5. This is a really, really bad omen for the global economy.

Deflation is coming, and the stupid billionaires are finally realizing they have no effective policy for stopping it. They got governments to print money and give it to the banks, but that didn't work. God forbid they print money and give it to the people.

[Ghost Dog]

10. God forgive? Not God, just (a discredited) ideology.

Cash needs to be spread liberally and preferably universally amongst those who will know how to efficiently spend it - ie. amongst the poor - thus strongly stimulating, in a 'trickle up' fashion, entire economies.

This should be done simultaneously in EU and USA.

[Honeycombe8]

6. Now's the time to buy. nt

[Politicalboi]

8. My Repuke brother has gold

I talked to him today, but he didn't say anything about it. Maybe he sold most of it Friday. I was thinking the other day that Marijuana might be a good investment before it goes totally legal. If MJ is legal, Hemp hopefully will be coming back strong.

[Mojorabbit]

9. Bought mine at 300 an ounce so it is still the best investment I have made overall. nt

[Paulie]

11. Only if ya take your profits

Otherwise you just have a pile of pretty metal.

[joshcryer]

12. Nearly industrially worthless metal.

It still amazes me that it has much value at all.

[maddezmom]

13. Locking-duplicate topic

http://www.democraticunderground.com/1014454768