Why Gold Prices Crashed
The past ten days, all of us know that gold prices have slumped. Here is an insight into the why’s and how’s of it. Stock and Commodity markets still run under the age old demand-supply theory. And Gold prices fell due to the excessive supply of Gold in the International Market (especially US) and India primarily relies on imports for Gold. 1. With the US Economy in the recovering phase, the investors have once again found the equity market attractive and are moving away from gold, which they considered as a safe-haven investment. This has led to the rising supply of gold in the commodity market. 2. The investors are also selling the gold they own in paper, forcing the Exchange Traded Funds (ETFs) to sell their gold stock to buy back these papers. However there is a conspiracy theory, which is more interesting and which better explains this abrupt fall. This was schemed by some large b...