The gold price collapsed at the end of this week, in just two days quotation on the underlying futures contracts with delivery in December gold collapsed by 9.3% on the New York Stock Exchange, the largest drop in the price of the yellow metal since 1983, according to Bloomberg. The price of silver has had a steeper decline: on Friday silver futures with delivery in December were down by 15.2% to $31.02 per ounce, after losing the previous day about 10% of its value. Platinum and copper have also recorded large decreases in the last two days of trading sessions last week on the New York Stock Exchange.
Friday, an ounce of gold traded at $1,639.8, as opposed to $1,808.1 an ounce at the closing on Wednesday. Gold has lost about 15% of its value from highs reached earlier this month, when an ounce of gold was worth $1923.7. Some international experts believe that the severe reduction of the price of gold and silver were recorded due to the entry of investors into margin call due to the sharp decline recorded on the stock markets and were thus forced to liquidate positions in precious metal.
Other analysts believe that deflationary pressures are affecting the gold quotation in the current context and that many investors no longer trust any investment in gold as a refuge and prefer to keep the cash. The gold price has risen almost steadily in recent years and brought double-digit annual returns, fueling fears of investors on the formation of a bubble (asset price growth exaggerated), which could break and cause a price collapse of the gold.
Since early 2009, gold quotation rose about 130% to new highs this year.