Price of gold drops as economy picks up

POSTED: 08:34 PM EDT Jul 09, 2013    UPDATED: 11:46 PM EDT Jul 09, 2013 
Gold prices drop

Just as the economy starts to show signs that it's improving, a hot commodity is beginning to suffer.

Selling gold is an easy transaction if you're looking to make a quick buck, but you may want to do it sooner than later.

The price of gold has dropped pretty drastically and experts say it doesn't look like it will turn around anytime soon.

"I think it has caught us all by surprise," said Ginger Mumpower.

Mumpower owns Ginger’s Jewelry in Roanoke and said the 17 percent drop in price is the largest dip she’s seen since the 1980's.

"The stronger the dollar gets and interest rates start coming up typically the gold prices drop," she said.

Many gold buyers keep a close eye on the market and try to sell when they think the price has peaked. But for others, like Loretta Barksdale, they're just looking to make a little extra cash on some jewelry they know they'll never wear.

"I'm making a decision to sell it and let it go,” said Barksdale. “I don't think anyone in my family would even want it, I know they wouldn't so I might let it go."

Barksdale's pieces are family heirlooms and while they hold a special place in her heart she said she doesn't mind letting them go while the price of gold isn't at an all-time high.

Mumpower said even though the price of gold is down from what it was a few weeks ago, it is still a pretty good price.

"Even if they cash out at $1200 an ounce it’s still much, much higher than when they made their purchases," she said.

When it comes to the gold market, anything can change on any given day.

"I do think that eventually the prices will go back up but I don't have a crystal ball," said Mumpower.

Gold prices hit at about $1800 dollars per ounce a few months ago.

It hit at $1255.50 on Tuesday, according to Mumpower.

Gold buyers said if you need immediate cash, your best bet is to sell it now. If you have the ability to hold out, you probably should as it will only be a matter of time before things turn around.