What you're experiencing is probably QDF - Query Deserves Freshness. It means that Google places newer pages nearer the top of the results for a little while before moving them to their more fitting location.

Just keep building links and you'll get back up there.

It could have been a result of the backlink package you purchased. If you got a lot of backlinks from that package then you could have been knocked down for a bit. Usually it will just come back, though. Just keep posting and linking and don't worry about it too much.

Hey Tony. I also have a few sites that are around that age. I have seen some movement as well but I haven't purchased any backlink packages. There's really no way you will know if the backlink packages caused anything or not. It could be a re-evaluation and I have heard rumors of an update...

Are you saying you still show #1 in Google when you type it into the search engine but you are really not ranking that high? That's the Google Shuffle.

People use different terms for the same thing sometimes. Call it dance or sandbox or Google whims, it still sucks when it happens to you. And it's not "freshness" when the difference is that substantial, good grief.

I've seen this happen and oddly enough it was keyword targeted. At first it was gone for every keyword I was targeting. Then after a couple of weeks, it regained it's old ranking (actually 2 spots better) when I searched for "city widget" but still nothing for "city widgets" or "city widgeting" all of which ranked well before. Over time they all came back.

So, keep building GOOD QUALITY links and be patient.

Good luck!