What caused this drop?
I'm going to guess that you found this because of a stock screener.  This company went through a 1:20 reverse split on June 30, so every 20 shares outstanding became a single share.  Where before you had 20 shares worth $100 you now have 1 share worth $100, the value of the company doesn't change because of a split.  This company was never trading for $30+ per share.  Reverse splits are typical of a floundering company trading on an exchange that has a minimum share price requirement.  While reverse splits don't change the value of the company, just the number of shares outstanding and the price per share, no healthy company performs a reverse split.  Reverse splits are generally a massive signal to jump ship... The company seems to be trading for $1 right now, why the value fell from a pre-split $1.65 ($33/20) to $1 is anyone's guess; how the company ever got to $1.65 is also anyone's guess. But looking at the most recent 10-Q there are numerous causes for concern:  Note 2. Capital Stock On March 6, 2017, the Company issued as compensation for services provided a total of 650,000 common shares with a fair value of $390,000 to a third party. The fair value of the shares was based on the price quoted on the OTC pink sheets on the grant date. this indicates a share price of $0.60 ($390,000/650,000) as of 3/6/2017, just to reinforce that the google price chart doesn't show the true past but a past adjusted for the split Results of Operations The three months ended March 31, 2017 compared to the three months ended March 31, 2016 For the three months ended March 31, 2017 compared to the three months ended March 31, 2016, total revenues were $0 and $0, respectively, and net losses from operations were $414,663 and $26,260, respectively. The net losses were attributable to costs attributable to operating as a public company, in particular, common stock with a valuation of $390,000 that was issued to an investor relations firm in the first quarter of 2017. Going Concern As of March 31, 2017, there is substantial doubt regarding our ability to continue as a going concern as we have not generated sufficient cash flow to fund our proposed business. We have suffered recurring losses from operations since our inception. In addition, we have yet to generate an internal cash flow from our business operations or successfully raised the financing required to develop our proposed business. As a result of these and other factors, our independent auditor has expressed substantial doubt about our ability to continue as a going concern.    Liquidity and Capital Resources We had no cash as of the date of March 31, 2017. Additionally, since there is no balance sheet in the last 10-Q (another bad sign), the last annual report 10-K has this balance sheet: So the company: So why did the stock value plummet? It's anyones' guess but there is no shortage of ways to justify it.   In fact, it's reasonable to ask how is this company still worth $3mm ($1 * 3mm shares outstanding)... I do not fully understand the transactions involved, but it appears that there was a reverse stock split (20:1) and some legal status change as well on June 29th. This seems to be the cause for the change in valuation of the stock as the dates match the drop. https://www.otcmarkets.com/stock/RMSLD/filings
The lot size is 100 troy ounce. See the contract specification at the same site; http://www.cmegroup.com/trading/metals/precious/gold_contract_specifications.html So with the current price of around $1785, one lot would cost you around 178,500. There may be other sites that offer smaller lots you would need to check with your broker. if the price moves up by $500, you gain $50,000 for a lot. The margin required changes from time to time:  Currently it's $3666, with a maintenance of $3332, so a drop of $3.34 per oz of gold will cause a margin call. You make or lose 100 times the per oz movement as there are 100oz in the contract you cited. There's also a broker fee analogous to the commission on a stock trade.  The other option would be to buy a fund that invests in Gold, this will be more easier to buy and the lot sizes will be much less. I hope you jumped into this great opportunity. At the time, experts said gold would have a straight run to $5000. "Can it be so that these low-interest rates cause investors to take greater risk to get a decent return?  With interest rates being as low as they are, there is little to no risk in banking; especially after Dodd-Frank. ""Risk"" is just a fancy word for ""Will I make money in the near/ long future."" No one knows what the actual risk is (unless you can see into the future.) But there are ways to mitigate it. So, arguably, the best way to make money is the stock market, not in banking.  There is a great misallocation of resources which at some point will show itself and cause tremendous losses, even maybe cause a new financial crisis? A financial crisis is backed on a believed-to-be strong investment that goes belly-up.  ""Tremendous Losses"" is a rather grand term with no merit. Banks are not purposely keeping interest rates low to cause a financial crisis.  As the central banks have kept interest rates extremely low for a decade, even negative, this affects how much we save and borrow. The biggest point here is to know one thing: bonds. Bonds affect all things from municipalities, construction, to pensions. If interest rates increased currently, the current rate of bonds would drop vastly and actually cause a financial crisis (in the U.S.) due to millions of older persons relying on bonds as sources of income." If the period is consistent for company X, but occurs in a different month as Company Y, it might be linked to the release of their annual report, or the payment of their annual dividend. Companies don't have to end their fiscal year near the end of the Calendar year, therefore these end of year events could occur in any month. The annual report could cause investors to react to the hard numbers of the report compared to what wall street experts have been predicting. The payment of an annual dividend will also cause a direct drop in the price of the stock when the payment is made. There will also be some movement in prices as the payment date approaches. &gt;And how did this cause the MBS to get wiped out, was it a written clause or did they just collapse from the value dropping so hard?   It was written into the debt instruments.  MBS and CDOs are broken down into tranches with descending priority of claims to the collateral pool.  When it comes time for payment, the top tranche gets paid out 100% before the one below it is entitled to a single cent, and so on and so forth.  Here's an example of how one might be organized:    Foo | Bar | text ---|---|---- Tranche | Size | Credit Rating Class A | 750MM | AAA Class B | 100MM | AA Class C | 60MM | A Class D | 50MM | BBB Class E | 40MM | Not Rated  In this example, lets say that 5% of the loans defaulted, meaning that of the $1B, only $950MM was available to get paid out (assuming no over-collateralization, which most had, but that's besides the point here).  The Class A would get the full 750 they're due, the Class B would get the full 100, and the Class C would get the full 60.  At this point there is only 40MM left, so the Class D would get 40 of the 50 due (a 20% write-down), and Class E would get nothing, getting completely wiped out.  &gt;I dont know what subordination level means Subordination level basically just means how much debt it below it on the capital structure--how much needs to get completely wiped out before any particular tranche starts sharing in the losses.  &gt; Did defaults reaching 8% meaning that 8% of loan takers defaulted?   Yeah more or less.  Technically I think it's that 8% of the value of the mortgages defaulted, but I believe they were set up to be relatively the same size within each instrument, so there's not really much distinction between 8% of the loan takers and 8% of the aggregate value. "This is the best tl;dr I could make, [original](https://www.higherrockeducation.org/blog/economic-analysis-of-the-solar-eclipse) reduced by 90%. (I'm a bot) ***** &gt; According to the law of demand, as prices increase, the quantity demanded of a good or service decreases.  &gt; Factors other than price can shift the entire demand curve and cause an increase or decrease in the quantity demanded at every price point.  &gt; The slight decrease in the market price due to new suppliers was not offset by the significant increase in the demand for products and services in the path of totality.   ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6xtrl7/economic_analysis_of_the_solar_eclipse/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ ""Version 1.65, ~203519 tl;drs so far."") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr ""PM's and comments are monitored, constructive feedback is welcome."") | *Top* *keywords*: **price**^#1 **demand**^#2 **supply**^#3 **people**^#4 **totality**^#5" This is dumb on many levels.  First are they really trying to blame the Flash Crash for investors leaving the market. It's 2014 and they claim in 17 of 25 months since the 2010 crash investors have withdrawn (not really sure what this means either, since shares don't disappear- does this just mean the market is up? It's unclear). Either way the article quoted is from 2012! And for a research team creating an empirical model, this is a very scary usage of small sample size,  mistaking correlation for causation,  etc.  And the algo,  though they don't give much info,  seems to be the very essence of data mining. Pick a million signals and filter on those that are empirically the best.  If you are an individual investor or a small fund thinking of purchasing something like this,  first consider: if it really worked, why are the founders selling it when they could just use it themselves and profit from it? It's almost guaranteed not to work out of sample Wonder if it's because growth is slowing and Bezos realized he needs to do a deal to keep the stock price going.  Not a terrible idea in the short-term perhaps. Lower prices on premium foods to juice growth. Analysts are happy, investors are happy. I've always understood inflation to be linked to individual currencies, although my only research into the subject was an intro economics course in undergrad and I don't recall seeing why that would be the case.  I guess the basic principle is that currency traders are watching the printing presses and trading in exchange markets to the point that the exchange rates fall in relation to increases in money supply. There's probably something about the carry trade in there as well, but it's late and I took some medications, so someone else will have to carry that torch. I must admit I've not really paid attention to foreign currencies like HKD, but the proximity and political relationship with China probably greatly complicates your question, since part of the problem has been China's currency peg.