Gold scheduled for June delivery
plunged in price by $64 to close the market price at $1,501 per ounce as of the
market closing on Friday. This is the largest drop in the price of gold since
February 2012. For the past ten years the price has been steadily climbing. At
the beginning of the millennium the price per ounce was around $300 an ounce.
In 2008 it skyrocketed to $1000 an ounce mainly due to the financial crisis and
people fearing a bank collapse and turning to gold as a safer more tangible
investment. Investors tend to buy more gold when they expect inflation to
increase, an indication that prices aren’t rising tend to sell their gold.
The article goes on to talk about
how the price of gold has been declining due the market growing stronger and
stronger. This is indeed quite a good indicator that our economy is growing
back to its former glory. It shows that people are gaining more and more
confidence in the market by liquidating their gold and in turn investing it in
the market.
It's interesting to note that this decline in gold prices, which would seem to indicate that something bad is happening, is actually a good indication that our economy is growing stronger. This is just another sign that our countries economy is heading in the right direction.
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