It's been a tough time to own gold lately. Last Friday, the price dropped 5 percent to conclude its worst-performing week since 2011. At that point, the metals had entered bear-market territory - defined as a 20 percent decrease after its peak - since it had fallen 23 percent from the peak price of $1930.20 per ounce, set in September 2011.
But the worst was yet to come. Yesterday marked the biggest single one-day price drop for gold in 30 years; the price fell by $144 an ounce on Monday, or 9.6 percent of its value. It's now at $1,357 an ounce, down 28 percent from the peak.
Since 1975 gold has entered that bear market territory on 13 different occasions, according to data compiled by the Bespoke Investment Group. The average price drop on each of those occasions has been more than 31 percent. So it may still have further to fall.
No comments:
Post a Comment