It has been a bad year for gold. The precious metal has been hit hard this year, most significantly by the Federal Reserve´s tapering of the quantitative easing program in the US and is heading for its biggest annual drop since 1981.
Analyst forecasts do not look promising for the year ahead either. With signs that the global economy is improving currencies will get stronger and investors will not feel the need to turn to the safe haven gold normally provides when other stocks are not performing well.
When the market closed on Friday, gold prices were down 25 per cent for the year and despite a brief rally last Thursday when the FED announced it was scaling back the stimulus program by $10 million to just $75 million a month. The Reserve Bank has now ploughed more than $4 trillion dollars into the US economy since 2008.
Where did it go wrong for gold?
But it wasn´t just the Fed tapering that has plagued gold all year long. The conflict in Syria that put the entire world on red alert halted gold brief recovery in the summer and with the US job market getting stronger the US dollar made a revival late in the year effectively hammering the final nails in gold´s 2013 coffin.
The dollar rally subsequently caused investors to jump ship and chase equities despite them being a far higher risk than precious metals. So, what does that tell you about how investors feel about gold at the moment! And it seems 2014 will not see gold entire a bull market either.
Professional investors that gamble with money every day are expected to concentrate their funds in shares and equities which will drive gold and silver prices down even further. That may not sound encouraging to gold owners looking to sell, but for investors looking to buy gold the next year is going to be a golden year to improve your investment portfolio.
There are several factors that will effect gold investment in 2014 and keep prices low. Government´s have put a stop to large mining projects and thus reduced the amount of gold that is being mined. The low prices have also forced smaller mines to cut down productivity or close all together. Mining is expected to stay in second gear next year too which will not improve prices.
Goldman Sachs and Morgan Stanley among others forecast further declines for gold in 2014, but gold also comes back eventually and will enter a bull market again. Either way, for casual investor´s gold is a long-term investment that promises to return a profit.
With that in mind, the next year presents investors with a prime opportunity to build their gold reserves at low prices ready for when bullion prices sky rocket. Gold resources are due to expire in around twenty years time which will drive up demand and subsequently drive up prices.
For the latest check on gold prices visit coininvest.com today and start investing in the financial security of your future.