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What happened to gold in 2008? In 2008, the gold market began the year with a normal bull market pullback from its highs of $1,035 to the very low $900 level. Jewelry had already begun to recover as the gold price dropped, but then the impact of the "investor meltdown", through forced selling by investors, selling what they could to cover losses in other markets, hit gold too. To make matters worse, in the U.S.A. so many investors had paid, from only a 10% deposit up to a 50% deposit, on the shares they owned. So when these share prices dropped more than 10% to 50% investors lost 100% of their capital. This type of selling sent prices lower, in the course of which more selling was triggered by the system of "stop losses", which automatically send out an order to close the position, without needing to contact the investor. Consequently, although the gold market fundamentals look excellent, the investor's struggle for survival, made them sell even their gold and silver positions. As a result the gold price was sent on a downward slope until it bottomed at $690.
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