Gold, silver prices crash: What's the impact on you
Gold and silver just took their biggest tumble in decades. Gold dropped 12% from its record high to $4,900 an ounce, and silver fell a whopping 30% to $85.
The slide kept going into Monday, with prices staying low in Asian markets.
Gold jewelry just got cheaper
If you're into investing or just curious about how global events shake up your wallet, this is big.
The crash wiped out large amounts of value after huge price surges last month. It also triggered margin calls for risk-takers and caused Indian gold ETFs to fall up to 16% and some silver ETFs to fall about 15%.
In India, gold fell by ₹14,000 per 10gm and silver by ₹20,000 per kg—so jewelry just got a lot cheaper.
Why did the metals crash?
A few things lined up: Trump nominated Kevin Warsh as the next US Fed chair, which boosted the dollar and made gold less attractive as a "safe haven."
Plus, prices had climbed so fast that investors rushed to cash out while they could.
Expectations that the Fed will shrink its balance sheet added even more pressure on gold and silver sellers.