Tuesday, December 2, 2008

Bad Times for Most Commodities: Gold to Slide

The Bench front page... The next time you hear an ad for gold as a protective investment in troubled times, think again. Gold itself is subject to market whims, and it's sliding drastically. It is, after all, just another commodity. 'Gold headed for biggest annual drop in 7 years', at Commodity Online today: Gold tumbled the most in eight months on speculation that the slumping global economy will damp demand for commodities. Silver plunged more than 8 percent. Equities in Asia, Europe and the U.S. fell following reports that showed manufacturing in China contracted last month by the most since at least 2005. Industrial declines in Europe and the U.K. also deepened. Another commodity that's down: Oil. Drastically down. Plus, oil prices, the back support of the shiny metal, remain to be pressured by the economic woes to the downside, discouraging gold to rise. Up till now, the precious metal recorded a high of $778.50 an ounce and shows a strong tendency to slip to the downside. RELATED: Gold, other commodities tumble on economic data Commodities Crushed In Europe New Zealand commodity prices fall further in November Global Miners’ Profits May Tumble 60% Next Year, UBS Projects Agriculture to lead 2009 commodity price rebound 'Comex gold market will run out of sellers' Oil continues to slide in Europe