Gold shares little in common with most ­popular investments: it performs no useful function, nor does it generate future earnings or produce a yield. And yet the precious metal holds a special place in the psyche of investors, even as much of its lustre has worn off in the past two years.

“Sentiment is bad – it’s a tough place and very hard to get people interested," says Baker Steel Capital Managers managing director David Baker , who manages a gold fund. “But this is where you make the money – by buying now and putting it in the bottom drawer . . . I think if you’ve made some money elsewhere in the market, now is a good time to diversify."