Biggest Drop in Gold in 3 Decades

2013 was not a great year for gold, with the precious metal experiencing its biggest price drop in over 3 decades.

2013 was not a great year for gold, with the precious metal experiencing its biggest price drop in over 3 decades.

At the beginning of the year, gold prices hovered around the 17 hundred dollar-per-ounce range.

By late December, that figure had plummeted 28 percent, landing at around 12 hundred.

Prior to the recent downturn, gold had enjoyed a 12-year run of increases, reaching an historical value peak in 2011.

During that time, prices quintupled.

Now, the trend among investors is to ditch commodities and get further into equities.

Throughout 2013 many dumped their gold holdings and re-invested the money elsewhere.

Catalysts for the change of heart are several in number, and include the financial meltdown in Cyprus and changes in the Federal Reserve System’s stimulus initiatives.

Among the only places where purchasing remained strong was in India and China.

As bad as 2013 ended up being, market watchers believe that 2014 will be even worse.

Some predict that prices will drop as low as a thousand dollars an ounce.

Economist Roger Nightingale of RDN Associates has an even more dire outlook.

He said, "I think it could go to $500 quite easily before it turns up again."