No Hope for Gold Bugs?

Conventional wisdom says that gold is a ‘safe haven’, an asset to which investors flock when chaos threatens financial markets. Over much of the past century, it has served as a store of value. Those days may be over. Despite several such potential negative events in recent months, investors have wanted nothing to do with the yellow metal. June and July featured exactly the kind of events that would have driven gold prices higher in the past the Chinese stock market fell sharply and Greece came within inches of exiting the euro zone. But even the two of them combined didn’t have the usual effect. On July 8, when Chinese stocks touched a new low and Greek politicians were rushing to meet a deadline critical to a deal with their European creditors, gold was down 3 percent from the beginning of June. The yellow metal has fallen further since. At $1,092 an ounce, it is down 8.5 percent since the beginning of June and 9.5 percent from the beginning of the year. Source