To make matters worse, unlike in the case of technology stocks and housing, gold's historical significance has created an aura and illusion that gold prices will never fall. Since gold has been used as currency and has been sought after by nearly every civilization for thousands of years, gold investors assume that investing in gold is “safe.” But with gold now an object of mass speculation and subject to herd-like behavior,
we are not far from the day when investors realize that gold is, in fact, an “unsafe haven.”
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