With a wave of recent headlines boasting how well the U.S. economy is performing, some individuals believe gold may have lost some of its glimmer. However, as the year comes to an end, here are a few points you may want to consider on gold’s ability to shine in 2014.
1) Has Gold Reached the Bottom?
It’s interesting that gold is only down about 2% for the week, especially with numerous recent headlines about the bounce-back of the economy. In November, the U.S. economy added over 203,000 new jobs as the unemployment rate fell from 7.3% to 7%. Manufacturing data and additional employment data released this month also shows a boost in the economy. Typically, with such powerful headlines in the media, gold would take a much more serious hit. However, instead of remaining at its low for the week (around $1,212 per ounce), gold quickly rebounded, landing above the $1,225 per ounce mark. Is there just too much of a demand for gold to let it sink below $1,200 per ounce? Could this be the low investors have been waiting for?
2) Federal Reserve Tapering Timetable
It’s not so much a question of “if”, but “when” the Fed will begin tapering its $85 billion a month bond buying program known as quantitative easing. When this is announced, some believe gold may take a small hit. However, with such strong demand for the precious metal, gold could temper this storm quite well. Furthermore, after the dust has settled from the tapering announcement, investors understand that inflation will always be a constant. Many experts believe that gold has gone through a large adjustment to allow for more growth in the future.
3) Rich Dad’s Advice: Allocate 25% to Gold in 2014
If the reasons above weren’t enough to consider looking more closely at gold, consider something else. Robert Kiyosaki, author of the best-seller Rich Dad, Poor Dad, shared his insights on gold in 2014. Kiyosaki suggests moving about 25% of your investments into precious metals. He says, “With gold and silver prices heading down, I would acquire a larger position in physical gold and silver. When the stock market goes down, panic will set in, and gold and silver are likely to hit new highs.”
The American Bullion Gold IRA
American Bullion is a nationally-listed precious metals dealer with the U.S. Mint. We can help individuals who are interested in rolling over or transferring any portion of an existing IRA or former 401(k) from a previous employer into a precious metals IRA. A precious metals rollover is tax-free and easy to setup, with options to invest in precious metals such as gold, silver, platinum, or palladium. Contact one of our knowledgeable precious metals experts today at 1-800-326-9598 for more information.