Gold Price slash start another economic problem after the 2012 gold prices go down. This week price per 100oz is $1363, down over $200 since Friday's open.
Why this down
In any market, price is determined by the confluence of demand and supply. In many respects supply of gold is relatively fixed. We know the extent of discovered gold reserves and the rate of production. While Cyprus is being forced to dump "excess" gold in order to meet the ever escalating bank bail-out bill, its whole holdings are worth only $750m, hardly enough to move one of the worlds deepest and most liquid markets to this degree.
How to solve Banks
Bank gives loan against gold, now gold value down banks seeking another way because gold down less than bank loan amount so public not interest to recover her gold due to see want to pay more like (Capital + Interest)
Only sentimental families recover her gold others not
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