Stumbling gold will pick itself up again

Gold, after climbing for 12 years, stumbled badly in 2013. It lost 28%, its worst annual showing since 1981. And the near-term outlook is hardly auspicious. The US Federal Reserve is set to print slightly less money from now on, while in the developed world inflation has eased and long-term interest rates have risen.

So adjusted for inflation, yields are turning positive. All this implies that the global economy and financial system are gradually beginning to get back to normal – bad news for an asset that thrives on bad news and doesn’t pay interest.

Still, as Longview Economics says [...]

MoneyWeek magazine

Latest issue:

Magazine cover
Walking out on the banks

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 3 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

The problem with the Bank of England

Fracking: Nine reasons not to get carried away

Five small-cap stocks worth a flutter

This Dutch company could help us tame floods

ScreenHunter_01 Mar. 25 09.51

The latest investment opportunities & how you can profit - sign up to our FREE daily email HERE