Should you Invest Next Year?.
Even as the last days of 2013 come to a screeching halt, many experts were left in a state of confusion as to what really caused the gold plunge this year. As we close yet another chapter in our financial books, the question remains whether this precious metal is still a viable addition to any businessman’s portfolio. In order to make an informed choice, let’s see what the experts have to say.
Forbes’ Jesse Colombo believes that gold may be on the verge of waterfall-style decline and he is fairly certain of this if gold doesn’t manage to break back above its $1200 support level. While this comment was called out by some experts on their blog, CNBC reports that Goldman Sachs also predicts a “significant decline” in gold in 2014 following losses of around 26% so far this year. It is also predicted that gold will fall to $1,057 an ounce next year, a price we haven’t seen since 2010. Despite the downward trend of gold prices, gold bulls are very optimistic and expects the metal to recover and hit the $1,450 mark by the end of next year. Victor Thianpiriya, commodities analyst at ANZ believes the robust physical demand from China will drive gold prices up and may see a potential for the Indian demand to come backs.
Meanwhile, other private investors choosing to trade physical gold maintained their positive sentiment near a 6 month high. This report from Bloomberg was based on the latest Gold investor index from Bullion Vault. Some still believe that all this confusion is probably good for gold and the prices will be re-set to the upside next year because the pressures keeping it down, so far, are all temporary. All eyes are on next year’s comings and goings and we may have to look to China for our next move.