Morning Gold & Silver Market Report – 12/31/2013
DIFFERING OPINIONS ON GOLD’S 2014
The Gold price is set to end the year lower for the first time in over a decade after the biggest drop since 1981. Economists have many differing opinions on Gold’s immediate future. Some believe the price will fall further, while others, like Jeff Sica of Sica Wealth Management, believe otherwise. Sica said, “While there are no immediate worries about inflation, it can’t be ruled out in the future with economic growth accelerating in some parts of the world. Gold will find support at lower prices with interest rates hovering near zero.”
MarketWatch’s Andy Xie wrote on some of the unintended consequences that the Federal Reserve’s unwinding of monetary easing could have on the U.S. economy. He wrote, “The risk at home for the Fed is much higher than during the previous tightening cycles. The U.S. economy is still quite fragile. The improving labor market is due to declining wages for the re-employed. Hence, its contribution to demand is limited. The stock market could be 50% overvalued. The Internet sector is a vast bubble similar to what happened in early 2000. If the bubble pops, it may lead to reduction in corporate capex, which could pull the economy back into recession.”
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,189.30, Down $16.80.
- Silver, $19.00, Down $0.67.
- Platinum, $1,359.80, Down $9.90.
- Palladium, $710.50, Down $0.30.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.