Gold Spot Price Open: $1,481
Gold Spot Price Close: $1,355
Change in Gold Spot Price:-$126
Silver Spot Price Open: $25.98
Silver Spot Price Close: $22.78
Change in Silver Spot Price:-$3.20
Gold posted its biggest one-day drop in about 3 decades as metals started this week in even worse shape than they ended last week. When all was said and done, gold was down about 126 dollars and silver finished in the hole to the tune of 3 dollars and 20 cents.
Gold and silver holders got rid of their holdings in a panic on Monday as falling prices from last Friday continued into this week. The panic of massive sell-offs is a crazy one because once the slide begins, no investor is safe. Most investors react by selling their gold and silver in an attempt to not be caught too far down the line as the price continues to drop. The only thing about this type of, cut your losses, mentality is that, even if unintended, these investors are further driving down the price of metals.
The only positive that can be taken from this collapse is the fact that it has created a buying opportunity for people. Prices are so low that those who can afford it are having a field day purchasing metals. The values of metals now are the lowest they have been in roughly two years and there is no clear indication whether they continue to fall or will pick up due to increased purchases.
Another factor in the recent drop of metals is due to decreased trust in China’s economy. Their economic data has been inconsistent to say the least as of late and as numbers continue to turn up disappointingly, investors will not have trust in the value of metals. The reason China is such a big deal to investors is because they are one of the largest consumers of precious metals in the world, if their economy is down, less metals will be consumed, and the price will likely drop. Tomorrow’s end-results will be able to give investors and market watchers a better idea of where this week, as a whole, will end up going.
