I couldn’t avoid the fun pun in the title. Honest. With the record drops in the stock markets around the world in the last few days, many are trying to hold on to what profits they have. What that means is that many are selling off their Gold holdings. Gold has been on a run the last year or so and really has taken off creating plenty of room for profit with many investors.
Gold is very liquid, so inevitably it gets sold when people need cash to meet margin calls or hedge funds need to repay debt to reduce their leverage,” said James Turk, founder of GoldMoney.com, which had $186 million worth of gold and silver in storage for investors at the end of January.
And with the drops in the markets, I would imagine there are a few margins being called right now. Gold still is a decent safe investment as it really isn’t ever going to lose a large portion of it’s value. Or shouldn’t in any case. Even the 1.5% drop it just experienced really isn’t a huge drop. But a drop is a drop. Especially when it is caused by a non-related stock drop.