(Image Source: Flickr/covilha)

BY SAMUEL JOSEPH

ANCHOR MEGAN MURPHY

Is the gold run over?

That’s what analysts are asking after prices for the precious metal dropped for a fourth day, down three hundred dollars.

A guest analyst for The Wall Street Journal says the reason for the decline is the worsening situation in Europe’s market.

TATIANA SHUMSKY: “In the last, probably, three or so weeks what we’ve seen is this shift where Europe is looking even more unstable and suddenly we’re having these massive swings in equities, massive swings in other markets and people are having margin calls. And so they’re dumping their gold because they need cash to cover losses in other markets.”

And other precious metals, like silver, aren’t doing any better. Bloomberg says silver came to a screeching halt after huge gains last April.

“Silver for December delivery fell as much as 13 percent to $26.15 an ounce, the lowest price since Nov. 18, and was last at $29.94.”

And while some seem to be reeling in shock, a CNBC anchor says this really shouldn’t be that surprising.

ANCHOR: “Gold, we have to remember a couple of things here. Gold is not a sort of reserve currency. It’s going to be volatile. It is not a safe haven. ... Gold is going to be dictated by what traders do with it. If traders buy it at 1800 and convince the next guy down to buy at 1850, then you make a profit. But if the gold owners want to stampede to the door, then the next thing you know the price is going to go down.”

But it’s not all doom and gloom. According to the International Business Times, precious metals are still full of opportunities.

“Despite the carnage, gold remains up more than 25 percent on the year -- its 11th consecutive annual gain -- and silver is still up 7.4 percent, making them both prime targets for investors who need to cover non-precious metals losses.”

Analysts say the drop should be temporary, but also say there’s a chance for more dips as the global economic situation continues to change.