POSTED: Monday, April 15, 2013 - 3:47pm
UPDATED: Tuesday, April 16, 2013 - 7:23am
Gold prices dipped to a two-year low.
That has set off a flurry of activity with the buying and selling of the precious metal.
Experts say the momentum behind the prices falling has been building over the past several months, making people wonder if the "bull market" as they call it for the metal is coming to an end.
Gold isn't not the only metal falling in value either:
Silver and copper have also fallen in price as has crude oil, said Jay Oliver with Rose Point Capital Advisors in Tyler.
"In general, there is less demand in the last couple of days for commodities," Oliver said.
Oliver links the reason for the drop to several factors:
"The GDP numbers in China were lower than expected," Oliver said. "You put that along with the Feds current buying of bonds ... if they stop stimulating the economy in that way, that can be deflationary as well."
Don McPherson with American Gold and Diamond Exchange says he doesn't think the news will hurt him in the least.
He says he was flooded with customers Monday morning, all wanting to buy.
"A lot of times when this happens, people get nervous and start selling because they think it's going to keep dropping," McPherson said. "Not this time around. People are viewing it as a buying opportunity."
One article noted this news has been heightened since the island country of Cyprus last week announced it would sell gold as part of its bailout.
McPherson thinks that's what driving this recent move down.
"There's always rumor and speculation," McPherson said."I think the main reason is the European Union is trying to force several smaller countries with big holdings to sell off their physical gold to finance their countries."
This question is, 'What's next?' Will prices continue to fall?
Oliver says we will have to wait and see.
McPherson believes with confidence prices will rebound again.
"In the next 4 or 5 months we'll be back up to $1,700 level ...Personally, there's no doubt in my mind."