Is Gold a Falling Knife?

Due to gold's recent plunge marking its largest percentage drop since 1980, the explosive volume in the SPDR Gold Trust (NYSEMKT: GLD  ) , and many swirling global macroeconomic factors, the precious yellow metal has spooked investors. The decline has not been limited to the commodity, as miners like Goldcorp (NYSE: GG  ) , Barrick Gold (NYSE: ABX  ) , and Newmont Mining (NYSE: NEM  ) are experiencing precipitous declines as well. Adding to the concern is the fact that investors have been unable to pinpoint the precise cause of the collapse.

GLD Chart

GLD data by YCharts

In the below video, Fool.com contributor Doug Ehrman discusses whether gold has become too risky to touch under current circumstances and what the prospects for the future of the commodity look like. Gold has classically been considered a safe-haven investment, making its spiking risk a unique market dynamic worth understanding.

Goldcorp is one of the leading players in the gold mining market. For the last several years, investors have been the beneficiaries of several successful acquisitions and strong organic growth. Goldcorp's low-cost production of one of the most sought-after metals in the world continues to make this stock an attractive choice for long-term investors. To learn everything you need to know about this mining specialist, you're invited to check out The Motley Fool's premium research report on the company, which comes with a full year of ongoing updates and analysis to keep you informed as key news breaks. Click here now to claim your copy today.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2370691, ~/Articles/ArticleHandler.aspx, 10/23/2014 2:38:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement