What caused metals to drop BIG on Oct. 24th 2008?

[H Roark]

I've been looking at gold and silver charts and noticed a big drop on Oct. 24th 2008. Both gold and silver experienced a 1yr+ low of $692.50 and $8.88 respectively. Which factor(s) caused this drop? Do you believe we're ever going to see these numbers again under the Obama administration?

Also, does anybody know of any handy online resources that enable you to check the financial situation of a day in the past?

[muzzled dogg]

good question

[AmericasLastHope]

The Dow crashed from over 11,000 pts. to 8,000 pts. in one month. Investors panicked and sold stocks causing the U.S. dollar to rally against the basket of other currencies.

Therefore gold went on sale in America, but gold dealers were charging huge premiums over spot at the time.

[tmosley]

Yup, one of the local coin shops was charging ~$10/oz premium on silver.

[Bruno]

Yup, one of the local coin shops was charging ~$10/oz premium on silver.

That's outrageous!!

[PatriotG]

There is a good possibility that firms were selling out of profitable gold positions to meet margins.

Just a theory but a sound one.

[theoakman]

I've been looking at gold and silver charts and noticed a big drop on Oct. 24th 2008. Both gold and silver experienced a 1yr+ low of $692.50 and $8.88 respectively. Which factor(s) caused this drop? Do you believe we're ever going to see these numbers again under the Obama administration?

Also, does anybody know of any handy online resources that enable you to check the financial situation of a day in the past?

it was market panic. Every single asset in the world sold off that day, both good and bad. I think the only thing that rose in price was Campbell's Soup. The good assets have been bought back since then. During a panic, the market acts irrationally. It was one of those buying opportunities of a lifetime to snatch up some good assets. I put my paycheck in on some mining stocks that week and made some great profits. I'm still annoyed at myself for not going all in but I was just as scared as everyone else.

[malkusm]

Basically what has been said above is correct. Large funds (the "big players" on Wall Street) were selling everything they had to get the capital to meet margin calls.

I didn't have a lot of money at the time, but I bought 20 ASE's anyway the next week when the silver spot price was $9.12.

[tmosley]

That's outrageous!!

It's what the market bore. The other coin shops either closed shop or said they were "out". The price was manipulated below what anyone wanted to sell for.

[Nanerbeet]

Markets had to sell assets to cover margins.

[LibForestPaul]

It will happen likely once more . When it does, buy!!!. Cause it will only hit that low again once. When the double digit inflation on the horizon, it will be going up, and how!

[Jordan]

Deflation worries.

Then TARP and the stimulus happened, then the spending bill and refundable tax credits, then TALF, oh and then MBS buying. And just to round it off, quantitative easing of treasury bonds which is now monetizing the debt.

Just wait until 50 Million people get $250 in May: http://www.investingblog.org/archive...mulus-package/

$13 billion in fresh cash, all going to (mostly) fiscally broke seniors, the unemployed and people on disabilities. That money is going to hit the economy quickly, its not much, but its more than there was yesterday and that's the problem.

[Objectivist]

When did fuel/oil prices drop down again? Because oil was at $41 at the end of the year and gas dropped down to $1.94 west coast in Jan 09.