Some investors and traders finally decided to cash in their recent huge gains in the yellow metal, driving the price down Tuesday after a six-day rally sent it to record highs.
Near-term futures in New York fell $30.40, or 1.6%, to $1,858.30 an ounce in the regular trading session, then slid to $1,835 in electronic trading.
The price had reached a record $1,917.90 in electronic trading late Monday.
The sudden large swings could give some potential gold buyers pause, analysts said.
"The very thing that gold is supposed to mitigate against to a certain extent - volatility -- is the attribute it has taken on of late," said Jon Nadler, senior metals analyst at Kitco Metals in Montreal.
Silver, which had been up for seven straight sessions through Monday, fell $1.04, or 2.4%, to $42.28 an ounce Tuesday. Silver had closed at $43.32 on Monday, its highest price since May 2, when the metal was beginning a steep plunge after hitting a 30-year high.
Precious metals have streaked higher this summer on fears of another global recession and as Europe's government-debt crisis has worsened. The dive in stock prices since late July also has fed demand for gold as a haven.
Read more
No clients here. A decade ago the tech bubble burst and many investors moved their money into the housing market. Then in 2007 the housing bubble burst and frightened investors moved their money into the safety of gold.
Is the gold bubble about to burst? Just about everyone agrees that the "parabolic surge" in the price over the last month has moved it into "overbought" territory:
CNN: Speed of gold's climb alarms some
How much longer will gold head higher? Talk to any precious metals appraiser to localize. A friend of mine can help.
"I'm starting to see customers acting nervous," says jewelry appraiser Ron Traxler. "It's not panic selling yet. There's just an urgency that I haven't seen before. Customers are sensing that we're nearing a top and they don't want to get trampled when everyone starts running towards the exit."
Ron is a friend who's among few Graduate Gemologists in the country who have earned the distinction of Qualified Appraiser. You're always welcome to talk to his customers
08-09-11
Ron Traxler from Jordans Jewelry on WFAA
Previous News:
Jordan's Jewelry Receives 2008 Best of Addison Award
U.S. Local Business Association’s Award Plaque Honors the Achievement
WASHINGTON D.C., July 20, 2008 -- Jordan's Jewelry has been selected for the 2008 Best of Addison Award in the Jewelry Appraisal category by the U.S. Local Business Association (USLBA).
The USLBA "Best of Local Business" Award Program recognizes outstanding local businesses throughout the country. Each year, the USLBA identifies companies that they believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community.
Various sources of information were gathered and analyzed to choose the winners in each category. The 2008 USLBA Award Program focused on quality, not quantity. Winners are determined based on the information gathered both internally by the USLBA and data provided by third parties.
About U.S. Local Business Association (USLBA)
U.S. Local Business Association (USLBA) is a Washington D.C. based organization funded by local businesses operating in towns, large and small, across America. The purpose of USLBA is to promote local business through public relations, marketing and advertising.
The USLBA was established to recognize the best of local businesses in their community.
Our organization works exclusively with local business owners, trade groups, professional associations, chambers of commerce and other business advertising and marketing groups. Our mission is to be an advocate for small and medium size businesses and business entrepreneurs across America.
SOURCE: U.S. Local Business Association
CONTACT:
U.S. Local Business Association
Email: PublicRelations@USLBA.net
URL: http://www.USLBA.net
The following links are sites to assist our clients’ jewelry matters:
