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