Time to buy gold after precious metal sinks below $1,400?

Gold has fallen deep into bear market territory after holders of the precious metal dumped it en masse over the past few days, but does this represent a major opportunity for canny investors to buy back in?

Rumours of major investors liquidating positions, panic over the prospect of Cyprus using its gold reserves to help fund its latest bailout, as well as expectations the US may halt quantitative easing, has sent the already faltering gold price hurtling lower in the last few sessions. The precious metal hit a low of $1,322 this week, around 30% below its all-time September 2011 high of $1,923.7, having endured a sharp sell-off of more than 13% between last Friday and Monday alone. Some are convinced the investment case for gold is now coming apart, while others argue this is a clear bu...