shelter from the storm?

Investors may seek $gold as a "safe" investment during times of market turbulence. However during times of volatility, even safe assets may suffer as managers sell anything that they can to raise liquidity. To wit, late summer 1998, $gold fell in August as nothing was immune to the turmoil caused by LTCM and the ruble crisis.

Other examples include 1994 (O.C. bankruptcy) and summer 2002 ($NDX capitulation).