You probably would not invest in ANYTHING if you knew the value was going to drop drastically in the next few months, right? Well, would you invest in gold if you knew the value was going to shoot through the roof in 2014? – Probably.
In order to be a successful investor one must learn how to find hard assets or stocks that will increase in value with time. Unfortunately, there are literally hundreds, if not thousands of factors that can affect the market value of a particular commodity.
Gold Investing 101 (Prepping for another 2014 Bull Market)
It does not matter what you decide to invest in, there will always be a risk that the value will drop (hence risk vs. reward). Of course, some commodities maintain a steady value throughout the year while other commodities shift from one extreme to the next in a matter of minutes.
In fact, one of the reasons many people choose to open a Gold IRA account is because of the history gold has of beating inflation.
Regardless, when it comes to investing, you must do your best to study the market patterns of a commodity in order to have a general idea of where the value will be in the future.
Having a portion of your investments in precious metals is a great idea, but a lot of people are concerned about the future value of precious metals. Some people claim that the value will plummet and gold will be worthless, yet other people say that the value for gold will skyrocket.
The future value of gold is the subject of many debates. But, if you take a look at the value charts for gold over the past few years, it is obvious that the value of gold continues to increase and outperform a variety of other investments (especially when it comes to beating inflation).
However, in recent years, the value of gold has been changing quite drastically (many so called “experts” are calling it a gold bubble) which is why people are not sure if the value will increase or drop to the floor.
The price for one ounce of gold has been steadily increasing every year up until September 2011 where it peaked at nearly $1,900 per ounce, the highest it has ever been. Most people were shocked at this spike – it was the highest spike for gold ever recorded – investors must have been thrilled.
But over the course of one year the value of gold changed drastically from one extreme to the other (in a short period time) and then started to lose value (at least in the minds of traditional stock investors). Since September 2012, the value of gold has been dropping quite fast. In fact, in July 2013 the price for one ounce of gold was only around $1,200. That was the price of one ounce back in 2010!
Will Gold Prices Increase in 2014?
The question that is on every precious metal investor’s mind is “Will the price increase once again?” I firmly believe that the value of gold will increase again in 2014. I can’t predict exactly how high the value will go but it is my opinion that the value will increase. There are a number of different reasons why I believe the value of gold will increase in 2014.
First, India and China are beginning to invest in precious metals, thus increasing the demand, which will in turn increase the price. The rule of supply and demand is the main reason why the value of gold will continue to increase. If the demand for something is high and the supply is low the price will automatically increase.
I believe more and more people will begin investing in precious metals in the next year which will force the price of gold to increase drastically. Of course, gold can come in many different forms and some forms have a higher demand than other forms.
The demand for gold can be divided into four main categories: jewelry, investments, technology, and banks. Can you guess which category has the highest demand? That’s right – jewelry! The second most demanding category is investment. So as you can imagine, if the demand for jewelry increases, the value of gold will increase as well, and I am pretty sure jewelry companies won’t give up on their marketing campaigns!
The second reason why the value of gold will increase is because of lower prices increase demand and as I mentioned in the previous paragraph, if the demand increases, the price increase as well. Every precious metal investor will consider purchasing gold now because the price has dropped significantly.
The more gold that the investors buy the higher the demand will become and the higher the prices will become. On top of that, most investors buy commodities that are increasing in value because they want to make a profit. Can you see the chain reaction that this could create?
I believe this chain reaction will drastically increase the market value of gold next year. In fact, I would not be surprised if the price for one ounce of gold hits the $2,000 mark sometime in 2014 – some companies expect the price to reach $4,000+ per ounce!
The third reason why the value for precious metals will increase is because the Federal Reserve is taking steps to making it much easier for individuals to purchase gold. The details regarding the Federal Reserve’s plans are not clear but they are working on something that will improve the price of gold.
On top of that, many companies are cracking down on “paper gold” investment plans which are not backed by real precious metals. This will point more people towards buying the real precious metal instead of a paper that claims to be the precious metal which will once again increase the demand for the commodity.
Now is the Time to Invest in Gold & Silver: 2014 is Just Around the Corner
There are many reasons why the value of this particular precious metal will continue to increase. Don’t worry about the recent slump in the market – It happens. I would consider purchasing some gold right now since the value is quite low and is bound to increase in just a few months.
Imagine the profit you could make if you buy gold now for around $1,300 and in just one year the value is $3,000? No one knows for sure how high the value of gold will be in 2014 but in my opinion, it will increase. So, if you are interesting in rolling your current retirement plan into a Gold IRA, then click here to get your free report on gold investing.
Of course, there are other precious metals that you can invest in as well such as Silver for example. In fact, for those that are interested in silver, I’ve written an article here on opening a silver IRA account.
Editor’s Note: This blog post is just my opinion based on personal research regarding gold values for 2014. This should not be construed as financial advice. It is always important to seek advice from an investing professional before making financial decisions.