Speculators have their work cut out for them as far as the gold market goes in 2014. Following a great deal of political and economic uncertainty throughout 2013, precious metals prices have taken a drastic dive. Of course, investors who are familiar with the precious metals market know that prices are always fluctuating and this should not be a reason to sell out of panic. Rather, the best course of action is to simply hold tight and wait until gold prices inevitably come back up.
Predictions that gold prices would skyrocket in 2013 may not have panned out, but that is the very nature of any investment market. There will always be unforeseen circumstances that nobody can predict. In this case, part of what caused the gold spot price to decrease is the fact that the United States economy started to recover from the inflation that has been of such concern in the past few years. As confidence is restored to U.S. citizens, the demand for gold plummets. Of course, we are not yet free of economic concern; we are merely experiencing a slight improvement.
If you look at long-term graphs, gold has historically performed consistently. There have plenty of moments when holders were frightened because of price decreases, but gold always seems to find its way back up. While it can be unnerving for those who just got started in gold investing recently, seasoned investors realize that it is important to take these dips with a grain of salt. In a few years from now, it is highly possible that gold could hit new peaks that many of us never even expected.
Many analysts speculate that emerging market demand will boost prices throughout 2014. International market changes and political uncertainty on a global scale hints at increasing gold prices over the next decade. While low prices may be unattractive to some, many are using this period of decline to pad their financial portfolios with gold at a price that is more appealing. Buying low and selling high is the classic strategy, and all signs are pointing to this being the floor that buyers have been waiting for.
If you are considering investing in gold but still hesitating because of recent price decreases, consider talking to a professional about what they are expecting from the next few years. There are plenty of reputable dealers out there that will be happy to offer their opinion based on what they see every day. These people develop a sort of sixth sense from constantly monitoring gold prices, so you can be sure that they will be able to offer you timely tips and advice about the current state of the gold market, as well as what the future holds.
While there are certainly plenty of unknown factors that will contribute to gold prices throughout 2014 and beyond, we can use past gold’s past performance history to make an educated assumption that the next few years will see recovery in gold prices and eventually growth. Gold is a low-risk investment with plenty of room to grow. If you are looking to add much-needed diversity to your financial portfolio, now is a good time to buy gold while the price is low and potential is high.
The bottom line is that nobody knows what the future holds for gold investors in 2014, but there are plenty of reasons to speculate a positive outcome for current holders and buyers. If you are interested in looking into gold, simply contact one of the many trusted dealers online. This could be a very exciting opportunity if you approach it right.