Why is the price of Silver & Gold Taking a Nose Dive ???

Question

Why is the price of Silver & Gold Taking a Nose Dive ???

Answer 1

Gold prices have been high due to high demand.  The demand has been high as investors look for savers havens during economic crises.  The demand has now fallen, partly due to the high price and because both commodities and oil prices are falling.

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Answer 2

The simple answer is that prices go up and prices go down.  Sort of trivial.  Now is the case of silver and gold they have been going up for quite a while, about 7 years more or less. A cynic such as myself might reflect that since GWB is about to leave office maybe gold and silver will not do so well in the future.  Maybe it is time to cash out so to speak.

A person with a background more versed in economics might argue since the economy appears to be going into a recession and money might become dearer as a result, maybe gold and silver should be cashed in now while the price is up.  

I wonder frankly whether that person gave due consideration to the Fed's policy of inflating the money supply and whether in fact we will be seeing stagflation instead.  In which case maybe gold and silver are really good buys now. There is also the question of whether GWB has done so much harm that the new caretaker will be unable to reverse the trend.  

Answer 3

Is that a gold or silver necklace in your photo? There's no demand for it due to it being showcased in pictures like that...ewwww, that's just wrong. I like your answer to the kids asking about their pictures and what one looks best....your picture is SO much better right? Gross.

Answer 4

The increase in value of the US Dollar.

Perception of supply and demand.

Answer 5

I think the people who invested in gold & silver back in the 70's and 80's are now getting close to retirement and with their 401k's and investments tanking, they are selling what has made them money over the years...gold & silver. I could be wrong on this, but it is all I can guess.