Apr 17 2014
Will Gold Prices Be Boosted In 2014?

Over the last year we have watched the beating that the gold market took as gold prices tumbled off and on. Gold, the most volatile metal on the market has seen its ups and downs more than I can say. Although I follow the market on a daily basis I can assure you that most of what you see gold doing on the market is based on how the consumer is feeling about spending.

When confidence is up and consumers spend the price of gold goes down, and once people lose confidence and stop spending the price of gold goes up. Right now, our currency is the U.S. dollar, so if consumers spend it we don’t have a need of anything more. However, when the dollar fails we will see gold skyrocket to the extreme and hopefully you’ll have enough gold in hand to barter.

Does this mean that we can expect gold prices to soar in 2014? While the financial analysts have their own opinion about what is about to happen in the market and where the economy is going it simply means that we could expect the price of gold to soar. Hopefully, you have been buying gold and I am going to tell you why it’s really important that you do buy now if you haven’t already.

Gold PricesWhy Gold Prices Shouldn’t Determine Whether or Not You Buy

If you look at the price of gold at the end of 2013, then you are fully aware that the price was down nearly 30%. That is a big number, especially if you have followed gold enough to know how high the price of gold was early in 2013. Gold is up about $200 an ounce from the month of March and that is all quite surprising.

Those that wanted to sell did sell out of desperation to pay down bills, and get cash for other things. Even if the need was there it’s still hard to say that it was a good move to sell gold. Gold bullion is what it takes to prepare for tough financial times, so don’t chase after gold coins. At least unless you know that what you are buying is gold bullion coins. However, if you buy don’t be so quick to sell. Signs tell us that the economy really isn’t getting as strong as some analysts say it is.

Gold prices indicate that things are not looking good for our country because the price is climbing. Gas is going up and the price of milk is going up. While milk might have more to do with the crops, inflation is around the corner. Inflation has been rearing its ugly head for a while and now it’s becoming more obvious. It’s not something you can hide. Bullion took a hit last year and stocks took a hit, but in the end it’s strictly an indicator that the sleeping lion is about to rise as our economy continues to undergo constant change.

Signs That Gold Prices Are About to Change

If there are in fact changes that point to the price of gold going up what are they?

  1. Activity in China. If China isn’t buying our securities what does that tell you? They only buy what they deem to be of real value.
  2. Deflation. Consumer prices are dropping, which means that when inflation does hit it is going to hit big.
  3. Another recession. We had one recession then we found ourselves in another one. Just when we were led to believe it was getting better we discovered that unemployment was still as bad as ever and most economies are struggling with no sign of recovery at all.

As our country continues to face impending financial hardship and families try to figure out what their best option is, it’s important that you educate yourself on gold prices and how they trend.

About Joyce Becker

Joyce Becker daily encourages and inspires everyone she meets to live out loud with purpose and embrace the entrepreneurial lifestyle. Keep up to date with Joyce at: http://YourSecondYouthBlog.com

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