Gold prices are dropping like they're hot... again! The pretty metal reached its lowest value in 3 years yesterday after the US Fed warned it was planning to slow down its economic stimulus program. It fell to $1193 per ounce, the first time it's been under $1200 since August 2010.
Most experts blame the price plunge on a lack of the inflation... inflation many traders had expected to drive gold values up. The Fed's promise to slow down its "easy money" injection caused an immediate reduction in the chance of severe inflation concurring in the US any time soon.
Also, the general improvement in the US economy has led many to question the true value of gold and other precious metals. Gold is down nearly 30 percent in 2013 and could see its first annual loss since the year 2000. Silver prices also fell to $19.19 per ounce.
We say: This is fantastic news. Hopefully gold and silver will get even cheaper so we can buy a ton of the stuff soon!
Learn some mo': Gold Down Big, Set for First Annual Loss in 13 Years