Gold Headed for Biggest Decline in 30+ Years for 2013
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Gold has long been associated with a firm store of value, but that moniker is at risk following its bleak performance in 2013.
Market data has gold looking to end 2013 down around 30 percent. It would be the precious metal's first annual loss in 13 years and its largest decline since 1981.
While many got the gold bug following the financial crisis in the late aughts, as the Fed's stimulus program was expected to weaken the U.S. dollar with low interest rates and open market bond purchases, speculation of a taper earlier this year caused a disruption in the process. The dollar ended up being weaker in 2009 and 2011, but rebounded last year and into this year.
After hitting an all-time high of $1,888.70 per ounce in August 2011, gold closed at 1,195 per ounce on Thursday night, the lowest for the metal since August 2010. Adding to the drop in prices has been gold held by ETFs. The amount of gold held by such vehicles as SPDR Gold Trust (NYSE: GLD) has dropped 30 percent this year, exacerbating the move.
Some are seeing a rise in inflation as reason to buy now. The U.S. mint reported that goln coin sales to dealers were up 29 percent for the first 11 months of 2013.
Gold prices are down early once again Friday, with February 2014 contract off $2.3 to $1,191.3 per ounce on the Comex.
Market data has gold looking to end 2013 down around 30 percent. It would be the precious metal's first annual loss in 13 years and its largest decline since 1981.
While many got the gold bug following the financial crisis in the late aughts, as the Fed's stimulus program was expected to weaken the U.S. dollar with low interest rates and open market bond purchases, speculation of a taper earlier this year caused a disruption in the process. The dollar ended up being weaker in 2009 and 2011, but rebounded last year and into this year.
After hitting an all-time high of $1,888.70 per ounce in August 2011, gold closed at 1,195 per ounce on Thursday night, the lowest for the metal since August 2010. Adding to the drop in prices has been gold held by ETFs. The amount of gold held by such vehicles as SPDR Gold Trust (NYSE: GLD) has dropped 30 percent this year, exacerbating the move.
Some are seeing a rise in inflation as reason to buy now. The U.S. mint reported that goln coin sales to dealers were up 29 percent for the first 11 months of 2013.
Gold prices are down early once again Friday, with February 2014 contract off $2.3 to $1,191.3 per ounce on the Comex.
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