Why the market prices of gold are falling

 The falling price of gold

The market price of gold recently reached near-record highs. On the Comex market, an exchange for commodities like gold and silver, gold prices were above $1,600 towards the beginning of this year. On July 19, however, the price was down to $1,290, which is even an increase from June prices. The mid-June prices represent a 29.5% drop in the value of gold since the beginning of 2013 as reported by the Financial Times. Bloomberg Businessweek noted that this was the steepest drop since 1980, and it occurred over two days.

Why has the price dropped?

Prior to this drop, gold prices were increasing. This inflation lead to the most rapid rise in gold prices in approximately 90 years, according to the Financial Times. Many commodity traders and investors viewed gold as a safe, moneymaking investment. The inflation slowed down, however, when traders and investors no longer saw gold this way. Thus, demand for gold declined and so did its price. This decline in prices became a global phenomenon.

What now?

The price of gold could increase, but many do not expect that to happen right away. Some investors have even been trading their gold for silver as they perceive silver to be more secure investment. The lower price has also affected the mining industry, which may have to cut costs.

What does this mean for consumers?

Now that gold prices are falling from such highs, it is time to sell. If one is interested in trading gold for cash, then now is the time. One should attempt to sell gold before the prices drop further.