The price of gold slumped to a five year low on July 20 after dropping by 4% in just a few minutes in early trading in Asia.
The price fell to $1088 per ounce, down from a peak of over $1900 at the height of the global financial crisis.
Some analysts predict that the precious metal could fall below $1000 per ounce this year, although there is little consensus over why the price has dipped so low beyond a general feeling that as the global economy picks up, gold is losing its lustre as a safe haven.
A contradictory force is that gold has historically been seen as a good hedge against rising inflation. With inflation likely to pick up in the Western world in the coming years, gold might be expected to appreciate in value.
“What motivates most gold purchasers is their belief that the ranks of the fearful will grow,” Warren Buffett, the legendary US investor and head of Berkshire Hathaway, said in 2011.