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Opinion
Barry Ritholtz

10 Reasons the Gold Bugs Lost Their Shirts

If a 20 percent drop is described as a bear market, and a 30 percent fall is called a crash -- what do we call gold’s nearly 40 percent plummet?

It has been quite the ride for gold: from under $500 an ounce a decade ago, to above $1,900 in 2011, gold gained more than 400 percent. Since its peak of ~$1,921.15 on Sept. 6, 2011, however, the shine is off the yellow metal. Gold plummeted 38 percent, recently breaking below $1,200. Yesterday's close is within 5 percent of the lows, at $1,241.

If a 20 percent drop is described as a bear market, and a 30 percent fall is called a crash -- what do we call gold's almost 40 percent plummet?