When there seems to be nowhere to turn, investors often turn to gold. The unprecedented volatility in stocks and uncertainty about the world economy and financial system should make this an ideal time to own gold.

Conditions apparently are so tough, however, that the value of this traditional refuge has been sinking along with everything else.

From Oct. 8 to Oct. 22, a period when markets in many assets went haywire, gold fell about $260 an ounce, or close to 30 percent, to $680. After a mild recovery, gold for current delivery closed at $731.20 on Thursday on the New York Mercantile Exchange.