2013 was a slower year for gold, but as investors head into 2014, signs can already be seen that gold is showing promise in the new year. Physical demand is up, and gold is once again being touted as a safe haven investment.
Global Increase in Physical Gold Demand
Gold coins are flying off the shelves worldwide. Within the first three quarters of 2013, demand for gold rose close to 63%, according to the World Gold Council. In Canada, sales of Gold Maple Leaf Coins grew close to 82% in the first three quarters of 2013 alone. Australia saw gold coin and bar sales jump 41% in 2013 as well. Lastly, American Eagle Gold Coin sales jumped 14% between 2012 and 2013. Regardless of current prices, the demand for gold is higher than ever, making it a strong asset for future investment.
Gold investors remember when the yellow metal was sitting the $1,900 mark, and see the current price as a fabulous buying opportunity. With such tremendous up-side potential, investors are seeking out tangible gold in the latter half of 2013 and now in early 2014.
Demand from China is also doing exceptionally well. With India taking a step back as the world’s largest consumer of gold, China is set and ready to take center stage. Furthermore, Chinese demand for gold will most likely remain strong as the Lunar New Year on January 31st approaches, since gold is a common gift during this celebration.
Gold Still Viewed as a Safe Haven
Gold has traditionally been seen as a safe-haven investment during times of economic uncertainty. Today, gold is on track to boast its best weekly performance since October. Gold rose for a fourth session on Friday, hitting a two-week high as weaker equities spurred demand for the metal as a safe-haven asset. As tapering of the quantitative easing program continues through 2014, gold could be fighting an uphill battle. However, with such strong physical demand and the basic need for reliable investment options, the yellow metal could show promise in 2014.
American Bullion Can Help
American Bullion is a nationally listed precious metals dealer with the U.S. Mint. We help individuals roll over or transfer an existing IRA or former 401(k) from a previous employer into a precious metals IRA. The precious metals rollover is tax-free and hassle-free, and can include gold, silver, platinum or palladium. Contact one of our knowledgeable precious metals experts today at 1-800-326-9598 to find out more.