As far as I understand you can loose pagerank if you link to sites Google considers "bad". Sites that use hidden text, nonsensical sentences filled with keywords or have no content to speak of. You'll have to ask an employee of Google for clarification, but somehow I don't think you're going to get much out of them.
You know, I just uninstalled the Google toolbar. I figure what the hell, let Google see the bats for itself soon enough. I'm tired of the fear and loathing. But Hunter aside and to the original question, here are some of my bullshit theories as to why PageRank will drop:
You take down links.
You take down pages/galleries.
You get a huge spike in links, like say, a couple hundred in a month, and your site has only been up for a year and you don't have that much content to justify all the links.
You get a huge dip in links, like say you bought a hundred links three months ago and let them expire.
You are linked to a bunch of people and a couple of them get dinged as spammers; you are then considered part of a bad neighborhood.
Here's to having your ashes being shot out of a cannon as Johnny Depp weeps.
I don't believe time itself is a factor that lowers pagerank unless you take into consideration other factors like other sites that linked to yours may have disappeared over time.
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