Gold prices drop to lowest in four years

Gold prices drop to lowest in four years

It's at a four year low, the price of gold dropping nearly 42 percent since 2011. Just like oil and the stock market, the prices move in cycles.
It's used as currency and worn as jewelry.
     
"More importantly they serve as insurance," Gary Oakley with Lubbock Rare Coin said.
Gold normally carries a pretty hefty price tag.
"In August of 2011 it peaked at $1,888 an ounce," Financial Planner Mark Bass said.
It's now down to $1,100 an ounce.
"So that takes a little bit of the luster off the gold," Bass said.
"It's like any other investment, there's going to be ups and downs, it may possibly go down more than it is now, no one can say that," Oakley said.
The price drop is directly related to the U.S. dollar and the world's economy.
"The U.S. dollar has been strong compared to other currencies that tends to deflate the price of gold in dollar terms," Bass said. "Gold is popular and the price rises when people are nervous."
"Precious medals react to those and there's nothing to react to at this time," Oakley said.
Financially,now would be a great time to buy.
"Would I rather buy something and pay full price or would I rather buy it on sale," Bass said.
     
If you're considering selling, remember the price could rise again soon. That's why a rare coin expert said don't sell if you don't have to.
"You need a part of your assets in either silver or gold to cover at least 10 to 20 percent of what your net worth is."
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