and why is this not a complete surprise...it had the biggest gain in decades too.
From the JCK
The drop comes less than three weeks after the metal hit a new record of $1,920. At one point in overnight trading on Sept. 26, the metal’s spot price sank to $1,535.
Analysts called the decline a reaction to the belief that it had been “over-bought” and the market is seeing a “gold bubble.”
Even so, the price of gold has logged impressive gains this year. It remains up more than 10 percent since Jan. 1. The gold price increased 29 percent in 2010.
The price of gold first hit $1,600 in July.
There has been so much recent speculation in gold that prices skyrocketed up,
especially in the last 2 months.
Such speculation pushed everyone in the jewelry business to raise prices on their inventory.
In addition, prices were so high that manufacturers were being driven out of business...and that's not good for anybody.
A much needed correction has finally started, profits are being taken and gold is finally going back to a more reasonable level.
And this is a good thing.
It would have been one thing to have had a steady increase over a period of time, but it was another thing altogether to have had a level of speculation that move prices so quickly in matter of only a couple of months.
My clients have been asking me when we were going to have a Summer or a September sale.
Obviously, any sale was impossible as gold was going up.
Now hopefully, gold will stay at a reasonable level and we will be able to buy a lower prices...and sell at lower prices. And that's a win-win for both for us and for our clients.