Gold was up on Friday, but finished the week at its lowest ebb since the dark days of last November. The yellow metal rounded the week up at $42.87 per gram and $1333.50 per ounce.
Precious metals declined steadily in 2013 and analysts had predicted the downward trend would continue throughout 2014 – but with a certain geopolitical crises in Crimea and a fear of a global economic slowdown, gold went clambering up the spot charts.
Things are beginning to smooth over and precious metals have turned into steady decline – and will probably continue downhill unless the political apple cart is tipped over and makes a mess of the market. At the moment, the boys are bickering in the playground, but as long as they keep their hand to themselves everything should be okay.
In which case, 2014 will be a good year for investors to precious metals to their portfolios. And you will be just as well keeping an eye on emerging metals as well as gold and silver. Platinum is becoming a firm favourite with investors and Palladium is showing its best form since August 2011.
Why buy gold
Gold has been a safe haven investment for decades because of its ability to withstand economic depression and help investors through times of financial hardship. When currency is performing poorly such as in a recession, gold prices rise.
Analysts have been warning us of the impending debt crises which will collapse the global economy. Even observers outside the financial sector can recognise that the credit culture which banks have promoted since the 1950’s will not withstand the test of time.
The debt ceiling in the US is showing signs of cracking. It has been propped up by the Federal Reserve’s Quantitative Easing program, which has helped the economy recover, but at what cost. Analysts say the repercussions will become apparent several years up the line, but emerging economies such as Turkey and Brazil are already feeling the effects of investors transferring their money to the US market.
The more immediate concern is the actual strength of the dollar and whether the policies the US Fed impose to manage their growing debt crises will be sustainable. Having ignored the issue last October, the Senate have delayed the collapse until March 2015 by which time the US debt will be over $18 trillion.
Precious metal protection
In order to protect your financial situation in times of economic hardship, precious metals make good profits. If you start buying affordable gram-sized quantities now, over time you can accumulate a sufficient amount for low prices. When the credit crash hits, gold prices could more than double their current value and earn investors a handsome profit.
There are a wide selection of precious metal products to choose from. Gold bullion coins are the most popular choices as coins offer the best returns, and are aesthetically pleasing thus are appealing to coin collectors and also make a nice gift. For the latest gold prices per gram head over to coininvest.com today.