Gold Prices Drop

Sep 23, 2011 7:30 PM

"In a matter of 2 months it ran all the way to $1,921... That's too fast, too far, too quick." And that's how 30 year, Paradise Coin store owner, Bill Anderson, explains this huge price drop in gold.

On Monday gold surpassed $1,800 and ounce. By Friday.. it sits at roughly $1650. Anderson says, "It will find its bottom, it will consolidate, build a new base, and begin upward again." But as the value drops, some north state customers start to panic.. Pawning next to anything that will bring in the bucks. "One lady will come in with her jewelry and find out how much it's bringing.. And then the next day her next door neighbor is here, her mother is here, her sister is here," Anderson says.

Employees at Chico Cash Exchange are seeing the same sort of trend. Danielle Batha is seeing a flood of people bringing in gold chains, rings, bracelets.. Hoping to sell, before the value falls even farther.. Batha says, "A lot of people really are surprised and disappointed that they hadn't sold when they did.. And so we're seeing a rush of people coming in to sell their gold now.."

In the past ten years the value of gold has quadrupled.. Proving it is still one of the most reliable investments out there.. But many look beyond the long term investment, and choose to sell now, for the immediate reward, during times of uncertainty..

Both Anderson and Batha say, no matter how low the value may drop, they are next to certain, it will only be a matter of time before the next spike. "Who knows how long it will be dropping for and its any body's guess when it will turn back around.. But eventually it will," says Batha. Anderson says, "I think were still in for a long term trend in gold up. I wouldn't be surprised to see gold $2000 by the end of this year."


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