Has gold lost its shine?

Investors’ love affair with gold has cooled. As always, deteriorating performance has precipitated the change of mood – gold has fallen around 24% since October last year. This disappointing outcome has felt all the worse because almost everything else has risen since European Central Bank president Mario Draghi assured us the euro would last forever. After roughly ten years of rising prices, perhaps investors had grown complacent. The fact that many were recent converts to gold’s appeal meant there were plenty of weak holders liable to be shaken out by poor price action. An unfort...