Precious Metals Rise While Stock Market Plunges - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Precious Metals Rise While Stock Market Plunges

blog | Published On by
Precious Metals Rise While Stock Market Plunges
stock-market-down

Said to have been initiated by errant trades, several U.S. indices experienced the largest intraday drop today since the crash of ‘87.  Between 2:40 p.m. and 2:50 p.m. EST, the Dow Index plunged 998.5 points, or 9.2%, while the S&P fell 8.6%.

Many market spectators commented that they had heard a major firm accidentally released a program to initiate a $16 billion sale of e-minis, when they actually meant to sell $16 million.  This one mistake was thought to have spurred contagion, prompting computer-initiated sales market wide.

Further fueling the panic caused by the abrupt decline were images of Greek mobs protesting austerity measures taken by the Greek government in compliance with their bailout.

In response to the market dip, investors worldwide started buying into precious metals and other more stable assets.  Gold reacted to the decline by increasing at total of $28.20 to close at a net change of $22.30, or 1.9%.  Palladium and Platinum futures experienced a similar, albeit not quite as dramatic increase as well.  Precious metals investors claim this is a direct reaction to both U.S. market turbulence and insecurity about Greece.

Currency markets were also agitated by this drop.  Euro flight was observed while investors re-located funds to the U.S. dollar, Japanese Yen, and Swiss Franc.

Both indices were able to recover most of the decline before the end of the day.

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.