(USATODAY) — The price of gold sank to its lowest level in nearly three years Wednesday, in a massive meltdown of the precious metals market.
Gold is suffering as investors continue to weigh comments during the past week from Federal Reserve Chairman Ben Bernanke indicating the central bank’s massive stimulus might be winding down. If that’s true, it spoils much of the investment thesis of gold being a safe haven because now rampant inflation appears less likely and the economy is more stable.
Gold “was a bubble,” says Ken Winans of Winans International. “This is the unwinding of a bubble.”