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in periods of economic uncertainty. During the second quarter of 2011, the gold price hiked 22.69% and reached its highest price, at $ 1907. On
September 23, 2011, the gold price plunged $ 101.90, or 5.9%, in regular trading, which was the first $ 100 daily price drop since January 22, 1980. The gold
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After World War I, the United States experienced significant economic growth that was fueled by new technologies and improved production processes. Industrial production output increased 25% between the years 1927 and 1929. In late
October 1929, the decline began in the market and led to panic
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price had reached its top, but the global economy was declining. Investors had a growing concern in the global economic decline, and fear were raised of potential price fall. Panic selling occurred in the gold market and caused the price to plunge.
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that causes a sharp decline in prices. Specifically, an investor wants to sell an investment with little regard to the price obtained. The sale is problematic because the investor is reacting to
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The panic is typically the "fear that the market for a particular industry, or in general, will decline, causing additional losses." Panic selling causes the market to be flooded with
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on repayment of bonds, yet the Dubai government was unsuccessful to make a rescue package for the company. The debt problem of Dubai World triggered mass
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to throttle panic selling, provide a cooling period for people to digest information, and restore some degree of normality to the market.
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that are being sold at lower prices, which further stumbles prices and induces even more selling. Here are common causes for the panic:
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selling as more investors were unwilling to risk additional losses. The market sharply declined and was followed by the
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The mortgage crisis led to public concern over the ability of financial institutions to cover their exposures in the
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had a significant financial crisis in which its debt accumulated to $ 80 billion. The state-owned holding company,
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deepened and more investors withdrew their investments. In
October, the stock market crash occurred.
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fell 1,874 points or 18.1% during Black Week which began on
October 6. In that same month,
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in the property market. In the first quarter of 2009, house prices in Dubai fell 41%.
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Sudden, irrational selling of an investment causing its price to drop
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269:"Panic Selling Definition & Example | InvestingAnswers"
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High speculation in market (e.g. Dubai housing crash in 2009)
290:"Panic selling is hurting Dubai property market - CEO"
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Economic instability (e.g. financial crisis in 2008)
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342:"Gold prices: Biggest plunge since '80"
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161:reached their lowest level since 2003.
325:Spencer, Richard (November 27, 2009).
327:"Dubai's financial crisis: a Q&A"
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329:– via www.telegraph.co.uk.
308:"The Stock Market Crash of 2008"
37:is a large-scale selling of an
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145:reported their failures, the
151:Dow Jones Industrial Average
165:Dubai housing crash of 2009
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251:"Panic Selling Definition"
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100:Stock market crash of 1929
106:Wall Street Crash of 1929
125:Subprime mortgage crisis
119:Financial crisis of 2008
192:Many people invest in
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273:investinganswers.com
135:credit default swaps
294:ArabianBusiness.com
23:Crowd gathering on
366:Financial problems
312:www.money-zine.com
220:Stock market crash
147:market instability
52:Today, most major
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249:Ganti, Akhilesh.
188:Gold price plunge
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182:speculation
174:Dubai World
155:S&P 500
133:market and
78:commodities
25:Wall Street
371:Investment
360:Categories
236:References
123:See also:
74:properties
70:securities
39:investment
29:1929 Crash
27:after the
202:inflation
346:CNNMoney
209:See also
200:against
157:and the
95:Examples
178:default
43:emotion
64:Causes
198:hedge
170:Dubai
194:gold
141:and
56:use
47:fear
45:and
143:AIG
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