A gold bullion price drop has led to a dramatic fall in the price of gold.
The metal is currently worth more than $1,300 an ounce.
The price of a 1kg bullion coin has fallen by over $400 in just a few days.
And the price in precious metals has soared by more than a million per cent in just three months.
The bullion market is now the world’s fourth-largest after the precious metals, commodities and equities markets.
Gold bullion is still the second-largest component of the US economy, after the services sector, according to the US Bureau of Labor Statistics.
But this year’s price decline has been accompanied by a drop in the gold price.
Gold prices fell by more then 2,000% over the last month.
So what has caused this dramatic fall?
There have been some factors behind the bullion prices.
The gold market has experienced its worst bullion decline in nearly a decade, and its biggest decline in a decade.
The most important factor has been a collapse in demand.
The market for bullion has fallen from a peak of $7.3tn in April 2016, to $5.7tn in January 2019, according the London Bullion Market Association.
This was the highest bullion drop since 2006.
Another key factor has to do with the fact that gold is becoming increasingly valuable for consumers.
This year, bullion demand has risen by almost a quarter, according an HSBC survey.
But it is not just consumers who are being priced out.
Other factors are also impacting demand, including a collapse of the price differential between gold and other commodities.
For example, the value of gold in the US has fallen more than 30% over a year, according a Bloomberg report.
The world is also moving away from the gold standard, as nations move towards a new system of currencies.
And some countries, including Germany and the UK, are introducing new currencies, which may lead to a reduction in demand for gold.
And this is not the only factor behind the recent bullion declines.
Demand for gold is also being dampened by a reduction of foreign investment, which has increased by more that 20% in the last three months, according HSBC.
Gold is now being used as a hedging strategy against rising inflation and a weaker US dollar.
Gold has fallen in value since June, the day when Donald Trump was elected US president.
Investors are buying gold because it is cheaper than silver, the metal that is used to make coins.
Gold price drops can be expected to continue in the years ahead, as investors move to hedging against the impact of a US economic slowdown.
But at the moment, gold prices have fallen by more or less a million points.
The fall in gold price is not likely to be reversed anytime soon.
And a price drop of this magnitude could have a major impact on the economy and the outlook for future bullion supply.
If you are planning to buy gold this year, then it is worth considering how this bullion shortage affects you.
If gold prices drop below $1k, you might want to consider buying some other precious metal.