Should An Individual Investor Consider Investing In Gold?

For years, I’ve been of the opinion that investing a portion of my portfolio in gold and/or silver was a good thing. It’s a subject I haven’t talked about a great deal because the market for gold and silver has been slipping for the past couple of years. I believe that we are seeing the early signs that the bull market for gold and silver investments is about to resume.

If you would like to know more about investing in gold, and the different ways that the individual investor can invest in gold, I encourage you to click on Precious Metals Investments.

The purpose of this article is to capture the thoughts from a number of financial institutions to provide readers with an insight into projections for the price action for gold in the coming months.

Article: Gold Price Forecast For The Next Six Months

This article makes a number of important points that may be a surprise to many investors and traders.

• “Gold is one of the best performing asset classes in 2014, outpacing the stock market by a wide margin. If you watched only the mainstream financial media you would probably be under the impression that stocks have outperformed the ‘barbaric relic’ gold.”
• “The dollar is slowly losing its status of world reserve currency and the petrol dollar reserve is seriously being called into question. A growing list of nations are signing bilateral trade agreements to bypass the dollar, with both China and Russia turning openly hostile towards the dollar in recent months.”
• “The fundamental factors continue to support the argument for higher gold and silver prices.”
• “Note how the 2009-2011 advance of $1,200 was a little more than double the previous advance of $550. If this trend continues, we can expect the next major advance to take the gold price up by $2,400 or more. This would result in a gold price of at least $3,600 during the next up-leg, although it is likely to take between two and four years to reach this level.”
• “Start counting your gold in ounces, not fiat money. And lastly, buckle up as gold comes out of hibernation and begins a major breakout to the upside within the next 6 to 12 months.”

Article: Gold Forecast and Gold Stocks Bottoming Analysis

• “Gold and gold stocks are starting to firm up within their basing patterns”
• “While gold and gold stocks remain in their stage 1 basing pattern, I feel they are a little overextended to the upside and ready for a minor correction.”
• “One thing investors and traders must understand is that the stage I basing pattern can last months if not years at times. Trading during this stage I basing pattern can be very frustrating and volatility of the investment will remain high. This is a time when the investment is being accumulated and distributed by large institutions. This is what causes large percentage price swings within this stage.”

Article: Bank of America Revises Up Its 2014 Gold Price Forecasts

• “The worst may be behind after the sell-off in prices last year.”
• “As investors put less ounces onto the market, purchases from countries including China and India were sufficient to absorb mine and scrap supply.”
• “The bank lists a third-quarter average forecast of $1,300 an ounce, then $1,350 in each of the next two quarters. For now, however, BAMl says “the unfolding normalization of the global macro economy and the implications this has for rates/ inflation should continue to provide some headwinds for gold.”

Article: Why Buy In July?

• “Since the metal is volatile, it’s often very difficult (even for industry insiders, analysts and “experts”) to call gold’s direction in the near-term. There are however, a couple instances where we think discussing monthly patterns can be a very useful tool. The old “buy in July” argument is one of them, considering it has proven true 10 years in a row.”
• “The fact that gold experiences a slow season in the summer is not news. The metals markets tend to cool off and experience very low volume and contract interest in the summer months. Though this can be said about many market sectors, it is especially true for gold. We have seen very low trading activity this month which is quite the norm in July. Come August and September however, the gold market tends to come back to life; often with a vengeance.”

Article: Gold Has Bottomed, The Next Price Target Is $3,600

• “If you think our price targets are bullish, consider that John Williams of Shadowstats.com forecasts that gold needs to climb to nearly $9,000 and silver to over $500 per ounce to match the inflation-adjusted highs attained during 1980 “
• “While gold and silver will be excellent investments and we advocate holding some physical in your possession, the biggest opportunity for gains is with mining stocks. The best in breed companies are now more undervalued than at any point since the start of the bull market or depths of the financial crisis. Sentiment has been extremely bearish, which is precisely when large upside moves historically tend to occur.”

Summary:

I believe that we are seeing the early signs that the bull market for gold and silver investments is about to resume. As you can tell from the above article, there are differences of opinion about what the price of gold will do in 2014 and beyond. Recently I heard that Eric Sprott (a person I consider to be a guru when it comes to investing in gold and silver) believes the price of gold could reach $2,000 per ounce yet in 2014. Most every knowledgeable expert in precious metals believes that gold will reach $2,000 per ounce. They just don't know when.

If you would like to know more about investing in gold, and the different ways that a person can investing in gold, I encourage you to click on Precious Metals Investments.