The Commodities market hasn’t been very nice to investors in the last several months and that feeling has been realized the most in the Gold sector where futures have caused gold to tumble by approximately $300 per ounce.
Gold this week sits around the $1,600 an ounce range, down from almost $1,900 per ounce towards the end of 2011.
With US markets strengthening and uncertainty over Greece’s future in the Eurozone prices have continued to drop even though Gold has traditionally been seen as a “safe investment” during times of uncertainty.
According to Analyst Peter Wright:
“Gold continues to weaken, which is at odds with the broader investment view that in times of uncertainty and upheaval you might normally expect gold to be rallying.”
Mr. Wright continues:
“In all markets and all commodities, you do get to a point where everything stacks it in.”
According to Reuters:
“Gold prices are vulnerable to weakness in the euro, and consequent gains in the dollar, which makes the metal more expensive for other currency holders. Physical buyers in key consumer India have also been loath to buy.”
The drastic drop in gold prices is highlighted by jedge funds and other money managers who liquidated nearly $2 billion in U.s. gold futures over the last week.
Gold prices are not the only precious metal drops, Silver is down 1.7 percent at $28.11 an ounce.
Not all precious metals are fairing so poorly, spot platinum is up 0.6 percent at $1,457.99 per ounce and spot palladium is up 2.1 percent at $608.48 an ounce.
Do you think “gold value” is losing its luster in our post-industrialized era?