Brattle senior advisor and Boston University professor Mark Williams recently authored an article for the Financial Times in which he opines on the recent drop in gold prices.

In the article, “Gold bugs beware – the bubble will burst,” Professor Williams points out that last month’s drop in gold prices by $300 an ounce, the largest short-term fall in more than 20 years, signals the end of the bull market for gold. Due to economic uncertainty, especially in Europe, investors are selling gold and buying less volatile U.S. dollars. Recent price drops “erode the belief that gold is a ‘safe haven’ investment, prompting greater selling,” Professor Williams explains.

Professor Williams also argues that falling gold prices in the wake of continued economic uncertainty could be the sign of a fundamental market shift. “If gold is falling in a weak economy…imagine how it will perform when the global economy eventually moves from chaos to prosperity,” Professor Williams says in the article.