Gold slid to three-week lows early this week. As one of the world's most liquid assets, it sometimes gets caught in a short-term sell off as battered traders fleeing other assets try to raise cash. Longer term, however, its "proven risk mitigation properties" come to the fore, as World Gold Council (WGC) president Marcus Grubb puts it.
And risk "shows no sign of abating". The euro crisis threatens to cause another financial shock and the rest of the world's major currencies are being debased by money printing. Negative real interest rates around the world also bolster the ultimate store of value, as they are another indicator of eventual inflation.
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