What's happened to our faith in gold?

As gold prices crash, setting new two year lows and falling below three quarters of their peak, many have attributed the slump to fears that governments will sell of their stocks of the precious metal. The story goes that as supply increases, price will surely fall. But gold is somewhat unique. Seen as a strong store of value, gold is a safe haven during times of panic. As voltality dissipates, so does our demand for gold: