Recent decline in the futures price of gold indicates that it is no longer a safe heaven. Another 'bubble' may have just burst. People never learn - starting from old Dutch tulips back in the day, continuing with dot.coms in the 90s and housing - now another 'safe' investment is gone.
The research done by FreeStockResearch shows that many of the American stocks in the Dow 30 industrial average has outperformed Gold ETF in terms of returns on investment. Although greedy US banks or credit companies may show the same 'bad dynamics' as gold, most companies in the productive sector are doing much better. For example, Boeing stock price hovers around 70 $ while gold dropped from 170 to 155 in just a few days.
Most importantly, the claim that gold outperformed US stocks over any reasonably long period of time is not confirmed by the analysis of FreeStockResearch. Look at their correlation and relative performance to see that gold is no heaven any more...
