Due to gold's recent plunge marking its largest percentage drop since 1980, the explosive volume in the SPDR Gold Trust (NYSEMKT:GLD), and many swirling global macroeconomic factors, the precious yellow metal has spooked investors. The decline has not been limited to the commodity, as miners like Goldcorp (NYSE:GG), Barrick Gold (NYSE:ABX), and Newmont Mining (NYSE:NEM) are experiencing precipitous declines as well. Adding to the concern is the fact that investors have been unable to pinpoint the precise cause of the collapse.
In the below video, Fool.com contributor Doug Ehrman discusses whether gold has become too risky to touch under current circumstances and what the prospects for the future of the commodity look like. Gold has classically been considered a safe-haven investment, making its spiking risk a unique market dynamic worth understanding.
Motley Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.