By Sept. 28, gold was down about $200 in just a week’s worth of trading on the COMEX to close at $1,616.30 a troy ounce.
Silver was down by more than $10 to close Sept. 28 at $30.09 a troy ounce.
But it was even worse than that on Sept. 26. Gold traded as low as $1,532.70 and silver at $26.15, though neither metal closed at the lows of the day. By the end of trading on the 26th gold was priced at $1,592.50 and silver at $29.93.
The decline in metals coincided with worries that the European banking system was teetering on the brink of a crisis similar to what occurred in the United States when Lehman Bros. failed in 2008.
The world’s stock markets tumbled as a result, as did international currencies. The U.S. dollar rose sharply.
Some suggested that metals fell as bullion investors were selling to raise money to shore up their other positions.