April 16, 2013
Once as wealth accumulated by families to tide over rough times, gold has been reduced to a commodity trading. In the last few days, prices have plunged to register its biggest loss in more than three decades.gold prices have declined nearly 20 per cent while silver is down 23 per cent in 2013.
International insiders report that four major fund houses shorted the commodity, Which led to sharp declines on Wednesday, only to be followed up in Asia. The selling soon got out of control as margins and stop loss triggers came into play.
The gold prices have now officially entered the bear market with more than 20 per cent decline since its record highs above $ 1.900 in 2011 end.Indian gold prices have declined less as the fall is cushioned by weakness in the Indian rupee. But here too, the prices have come offthe record highs of nearly Rs 33.000 in 2011 to Rs 25.500 per 10 gms today.
Gold prices in India hit a 19-month low while silver was at 26-month low and trading below Rs 44.000 per Kg The decline in gold led to Indian jewelery and bullion traders lowering shutters due to sharp decline in prices as they incur losses on holding stocks.
This article was posted: Tuesday, April 16, 2013 at 4:50 am