In recent years, many people have been shunning stocks and investing in gold, usually thought to be a safe play for troubled times.
Other metals have followed a similar downward trend similar to how gold has been slowly decreasing.
“Gold is a bubble, and I think the bubble continues to unwind,” said John Mothersole, the lead nonferrous metals analyst with IHS Global Insight’s Pricing and Purchasing Service. “Unless you believe in the Mayan calendar cycle, gold is a bad decision.”
“The price of gold has just shot up dramatically for someone in India, and in the consumption market basket, that means a big decline in demand,” Mothersole explained.
Gold is a chemical element with the symbol Au (from its Latin name aurum) and atomic number 79. It is a highly sought-after precious metal, having been used as money, as a store of value, in jewelry, in sculpture, and for ornamentation since the beginning of recorded history. The metal occurs as nuggets or grains in rocks, underground “veins” and in alluvial deposits. It is one of the coinage metals. Gold is dense, soft, shiny and the most malleable and ductile substance known. Pure gold has a bright yellow color traditionally considered attractive.
Gold formed the basis for the gold standard used before the collapse of the Bretton Woods system in 1971. The ISO currency code of gold bullion is XAU.