Jeff Benjamin: When gold lost its luster

Jun 21, 2013 @ 12:00 am

Runtime: 1:35

InvestmentNews' Senior Columnist talks about April 15, 2013 ó the day the price of bullion plummeted.

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Video Transcript

Yes. It was a really wild day. I mean the gold started dropping like that, the biggest drop in 30 years in 1 day and everything else was moving at a normal pace. So nobody really paid that much attention to it initially then people started, you know, the gold bugs especially started looking at it thinking you know this is something big and then every lot of other gold bugs said this is a buying opportunity if anything else. But it was. It was surprising. It got people's attention especially since everything else seemed to be moving at a normal pattern. It wasn't a, you know, market-wide collapse of anything else, just that. When you see something you know a record drop in 1 day for the biggest drop in 30 years, that's a really big deal especially for something like gold that people look at in so many different ways. People look at gold as a currency, as a commodity, as a store of value, a hedge. You know people debate whether or not it's even worth anything to hold by governments and that was really what triggered it was Cyprus was talking about selling off their gold reserves to pay down their debt. So it just kind of escalated from there and it had fallen a little bit before that point, so some people said well maybe this is it. It's time to get out for a little bit. But it rebounded you know pretty much the next few days or at least you know most of the way back.

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