Ouch! Gold Hits a 2.5 Year Low
Those who invested in gold back in early 2012 when it was around $1900 an ounce are probably none too pleased to see that gold recently hit a two-and-a-half year low and is now hovering around $1300 an ounce. This may not be the end of the drop, though, since JCK Magazine says some experts are predicting that gold will likely drop even further, possibly to around $1100 an ounce.
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This Yellow Gold Starfish bracelet is sad, you just can't tell.[/caption]
However, there may be a silver (and gold) lining to this recent downturn if you do own gold and other precious metals. According to MSN Money's Anthony Mirhaydari, all the signs for an increase in gold prices are still there. He points out that housing costs and wages are beginning to increase, which is a tell-tale sign that inflation is on its way. And when inflation goes up, so does the price of gold. This means that now could be a good time to invest in gold, although you may even want to wait a few more months to see if it drops further.
Another piece of good news is that while gold has dropped significantly, gold jewelry as well as other jewelry prices haven't been affected nearly as much. This is typical since the price of jewelry is influenced by other factors like the design and brand in addition to its precious metal content. So if you are looking to sell gold jewelry that's designer, you shouldn't be getting too much less than you would have gotten a few months ago.
One thing to keep an eye on though is how long gold prices stay this low. An article recently written in the Wall Street Journal Online stated that if gold continues to stay about where its at or declines even further, gold jewelry prices will eventually decline as well. It's anybody's guess when or if gold prices will start rising again, but you can still get a decent price for it in the current market if you're looking for some quick cash.
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