Arguably the biggest shock of this turbulent year for investors is that the gold price is not going through the roof.
After surging at $2,052 an ounce on March 8, it has slumped to about $1,850 at the time of writing ― a drop of 9.8 per cent.
Gold is in correction territory, which is odd, given that for thousands of years it has been seen as a safe haven in times of trouble, and these are undoubtedly troubled times.
Most investment experts say every portfolio needs a sprinkling of gold dust to hedge against riskier assets such as shares. When stock markets lose their lustre, gold usually glitters. But not this year.
Gold is often seen as an inflation hedge, too, but rocketing consumer price growth hasn’t lifted it.
Does gold no longer work?
Gold is often seen as an inflation hedge, too, and investors certainly need one of those right now, with shares falling everywhere and New York’s Nasdaq tech index down more than a quarter.
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