Gold price plunge comes amid loss of appeal

London

THE problem for gold isn't just that prices are dropping. For many, the metal also has lost its charisma.

Sentiment means a lot in the bullion market, where only about 60 per cent of what gets mined or recycled each year is used in jewellery and industrial applications. The rest is sold as coins or bars, so when demand from investors dries up, there can be painful consequences for the bulls who remain.

Prices will drop to US$984 an ounce before January, according to the average estimate in a Bloomberg News survey of 16 analys…