Local Financial Analyst Puts Gold Collapse in Perspective [AUDIO]
Since last Thursday, the price of gold has plummeted by more than $200 per ounce. The Wall Street Journal reports that today's drop in price was the biggest in the last 30 years.
Ather Bajwan is the chief financial analyst for S. G. Long and Company in Missoula. He said on Monday that "what we found out today, was that gold really is an alternate currency, so it competes with the U.S. dollar or the euro or the Australian dollar. Anytime you see a slowing economy like China and a currency which is so heavily associated with inflation and growth, is going to take a tumble, and that's why you see the U.S. dollar doing pretty well against most currencies, and gold...not so much."
Bajwah said 'Its never a good idea to put all your financial eggs in one basket, like gold, but personally, now gold is beginning to trade in a valuation which is for me, much more comfortable than up around $2,000 per ounce. Its tough for me to justify owning a lot of gold at this time."