Gold Prices Unmoved By Greece, China, Puerto Rico – Why?

The argument for investing in gold is different than almost anything else: there is no cash flow to be valued or sales growth to be optimistic about and (unlike other commodities) industrial demand doesn’t justify the price. The idea is that it shouldn’t lose too much value in a bull market, and then when a crisis hits you benefit from the flight to safety of overextended investors.

“In a week in which events seemed tailor-made for gold’s safe-haven interest, the gold price failed to rise; instead, it continued a two-week decline, with prices falling by 0.8%. Despite a Greek default to the IMF, a closure of the nation’s banking system, and uncertainty about a referendum on austerity, gold prices could...