Not quite as bad as the 89% drop in the DJIA 1929-1932 but worse than Japan's 81.59% decline in the Nikkei, 1989-2008.
The Federal Reserve’s move to end its long-running bond-purchase program is slamming gold prices and shares of companies that mine precious metals.
Wednesday’s 4.3% swoon to $19.64 in the Market Vectors Gold Miners ETF (GDX) drives the ETF under $20 a share for the first time since October 2008, during the depths of the financial crisis.
The Global X Silver Miners ETF (SIL), falls 3.5% to close at $9.67, its lowest finish since its launch in April 2010.
The Market Vectors Junior Gold Miners ETF (GDXJ) was battered for a loss of 7.2%.
Miner stocks and gold prices extended their losses after the Fed’s announcement that it will wind down its “QEIII” program at the end of the month.
The SPDR Gold Shares (GLD) dropped 1.4% to $116.41.
The Fed’s move, while expected, was paired with a more upbeat assessment of the U.S. labor market. Those factor at once damp gold’s appeal versus income-generating assets, as a hedge against inflation and as a haven from economic uncertainty.......MORE