Will gold ever recover?

Beginner Questions
1

Despite owning a fair amount of bullion, I’ve never really followed gold. Can someone explain to me why gold lost so much value this year, and what the key drivers of gold price are?

What do you think will happen to gold over the coming years (and why)?

Thanks, and happy new year!

2

Hey JRC,

Maybe you may get something useful on Krugman’s thread on Gold & Silver:

http://forums.babypips.com/fundamental-ville/59982-long-term-gold-silver-analysis.html

Cheers

3

I guess gold lost so much value because a lot of people are becoming more optimistic about the future. Even though we are still in a state of recovery, things have improved a bit since 2008.

But there are a few people who are predicting a crash in 2014. Peter Schiff, who predicted 2008 crash is saying that there will be a crash in 2014 so perhaps we will see gold go through the roof again. Also stocks are really high at the moment with the S&P500 finishing 2013 at an all new high. This is kinda suspicious to me and there will probably be a crash 2014 when people start selling off stocks massively and when fed tapering fails.

4

There are ups and downs for everything no doubt. So I believe Gold will recover soon. But be very careful

5

Yeah of course Gold will recover. Remember the crash started when one of the big asian economies dumped their reserves disrupting the demand-supply equation in the process.
In 2013, stocks have been on an uprun as long as well as alternative investments(bitcoin and the rest), taking Gold’s place as the preferred secure investment.
As sure as the sun rises a market crash will ensue someday and everything is gonna reverse, when that day will come is a question to ponder on.

6

Schiffy has been predicting gold to rocket over $5000/oz for the last year. He also owns a precious metals dealer so it’s in his interest to drive up volume. As an analyst, he is grossly over-rated. :slight_smile:

7

It has recovered & It’s been bullish all year! :wink:

Don’t they call it the “currency of fear”?

So all you need is Kim in N Korea to launch a nuke or three on the USA & you’ll be sweet!

Happy New Year!