Does it just disappear into thin air? It has to go somewhere, doesn't it? If I have gold that is worth $100 one day and is worth $50 the next, where did the $50 go? Isn't money based on something?
What happens to the lost money in the stock market?
It's not really money that exists. The price of a stock or a commidity is a speculation - if X people sell their stock for $X at this given moment, then that stock is worth that amount. A stock really only has a hard cash value once it's sold. So the money hasn't really gone somewhere, it just means that your stock has lost value and if you sell it now you will get less money than you would have otherwise.
Reply:It isn't money until you sell it. It is just potential money. You don't lose or gain money in the stock market until you sell your stock. If your gold was priced at $100 yesterday and $50 today, you have not lost or made anything. But if you buy it today at $50 and sell it next year at $150 you made $100.
Reply:Why do people keep asking this?
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