GOLD has been in free fall for the past year, leaving most analysts and investors wondering whether the world will ever recover.
Gold’s price has plunged nearly 70% from a peak of more than $1,200 a troy ounce in January and has remained near the $1 a turd level since February.
It hit a low of $1.25 last month.
Silver has dropped nearly 40% since its peak in mid-December.
Gold has surged more than 40% and silver has been trading in the $3.00-$3.25 range.
Gold is also the biggest asset class to be hammered by China’s slowing economy, which has made it increasingly difficult for consumers to buy gold or silver.
Gold is trading in $1 to $1 an ounce for the first time in seven months.
Gold investors are worried China’s devaluation of the yuan has already made gold trading more expensive.
The dollar fell sharply against the yuan after China devalued the yuan to boost the export market and keep the country’s currency afloat.
Gold and silver are still considered safe havens by many people, but they are now in danger of becoming a bubble.
Gold prices rose $2.38 a tuck over the past week, according to a Reuters data feed, the biggest gain in almost six months.
The biggest jump was the $2,000-per-ounce rally that occurred in the early hours of Friday, when gold surged nearly 30%.
The dollar hit a two-week high against the yen and the euro at $1:1.10.
The pound also jumped.
Gold fell about $2 per ounce.
The dollar is trading at about 87 cents.
Silver is trading around $2 an ounce.
Silver is the best investment because of its ability to store wealth in gold, but that does not mean it can’t be used as a currency to purchase other things.
Gold, silver and other precious metals are becoming increasingly used as payment for goods and services.
Gold futures prices have been on a tear over the last year.