The price of gold experienced its biggest three-day plunge in decades, sinking below $1,600 an ounce, more than 15 percent lower than the record levels it hit earlier in September.

At press time on Sept. 26, the metal was trading at $1,599 an ounce.

The drop comes less than three weeks after the metal hit a new record of $1,920. At one point in overnight trading on Sept. 26, the metal’s spot price sank to $1,535.

Analysts called the decline a reaction to the belief that it had been “over-bought” and the market is seeing a “gold bubble.”

Even so, the price of gold has logged impressive gains this year. It remains up more than 10 percent since Jan. 1. The gold price increased 29 percent in 2010.

The price of gold first hit $1,600 in July.

The price of silver also plunged. It hit $29.80 on Sept. 26, basically erasing its gains for the year.

JCK