The price of gold bullion has dropped more than 17 percent from an all-time high reached in September as strapped hedge funds and sovereign funds sell the precious metal to raise money and the strong U.S. dollar strips it of its safe haven status.

In fact, some experts say it could go as low as $1,000 an ounce in the foreseeable future.

"Gold was a safe haven, a hedge and a speculative trade all at the same time," Michael Murphy, CEO of Rosecliff Capital, a hedge fund, told CNBC. "Long gold has been a winning trade for years.”

“We expect the selloff in gold to gain momentum into 2012. Traders are finding better hedges, better safe havens, and better speculative commodity plays than long gold."

Stephen Weiss of Short Hills Capital concurs, alluding to gold’s “bubble” potential.

“When an asset is thought to work in any market, that is the surest sign of a bubble,” says Weiss. “I believe we will hear about massive central bank selling to put currency in markets.”

Bull markets climb a wall of worry, according to Peter Schiff, CEO of Euro Pacific Capital.

“These sharp drops shake out the speculators and keep other would-be buyers on the sidelines,” Schiff says. “Once the weak longs are cleared out, the trip to $2,000 and beyond will resume unencumbered by excess baggage.”

Meanwhile, a Reuters poll of hedge fund managers, economists and traders shows that gold prices will dip below $1,500 an ounce in the next three months and won't break September highs until late in 2012 at the earliest.