Gold prices are getting destroyed today, but that’s just business as usual.
According to this chart from the financial blog The Short Side of Long, the gold market is now in its second-longest bear market in 40 years. It is closing in on 4 years since gold last topped at $US1920 per ounce in September 2011, but the duration is still shorter than the drop from 1999 to 1993.
Despite the lingering bear market, it still hasn’t been as sharp as past downturns. The gold correction as of today is hanging around a 39% drop since the peak, which makes it the either the 4th or 5th worst (out of 7) correction since 1975, almost indistinguishable on the chart from the drop in 1996.
So while its length may be approaching unprecedented lengths, it could be worse