Accendo Markets head of research Mike van Dulken also suspects demand for gold and silver could fall away further, especially if China proves unable to maintain growth of at least 7 per cent. He feels there is no guarantee demand will ever return to previous levels.
“I think markets now have thick skins and can put up with a lot more in terms of shocks than they used to be able to,” Mr van Dulken adds.
But Hargreaves Lansdown senior analyst Laith Khalaf hasn’t ruled out precious metals becoming popular again.
“I don’t think we would need inflation, but more another threat to the entire financial system to get them racing around again,” he says.
“Unlike Lehman Brothers, which was plumbed into the entire financial system, Greece was far more isolated because many international banks had severely trimmed their exposure.
“For retail investors I don’t think foreign currencies are safe havens, even the dollar. Your best safe haven is in your own currency as that’s where your liabilities are.”
Daniel Stewart & Co chief economist Alastair Winter doesn’t believe either currencies or precious metals can be considered safe havens, only safer assets.
He explains: “I’m not sure there are safe havens any more. There are safer assets such as US Treasuries, where Uncle Sam will pay upon maturity, but they can fall in value. However, I can see gold and silver coming back as safer assets, especially if inflation takes off.”
Edmund Tirbutt is a freelance journalist
