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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Should the income protection age cap be lifted?You can only get income protection cover if you are below age 59. With people now working for longer, should the limit be raised?
-
UK interest rate cut all but ruled outRates are expected to remain at 4.25% when the Bank of England announces its decision tomorrow
-
Gold regains some of its shineNews The gold price perked up this week, hitting a four-week high.
-
Gold regains its shine after inflation risks resurfaceAnalysis Gold prices have been rising over the past month as fears of US inflation resurface. Saloni Sardana explains whether this could usher in a new bullish era for the precious metal.
-
The going looks good for goldAdvice With inflation fears rising and interest rates nailed to the floor, the outlook for gold is bright, says John Stepek.
-
Mark Mobius: “I love gold”Features Mark Mobius, perhaps the best-known emerging markets investor in the world, reckons that gold should form at least 10% of any investor’s portfolio. And now is a good time to buy.
-
Gold is poised for a new bull marketFeatures The price of golf has hit a six-year high, breaching the $1,400 an ounce level not seen since August 2013.
-
Why you need to own goldTutorials All the talk of Modern Monetary Theory misses one key point, says Eoin Treacy. We’re already well down the road of printing money to fund government spending.
-
Fed interest-rate rises won’t hold the gold price backFeatures Some analysts worry that higher US interest rates are bearish for gold. But the evidence doesn’t bear this out.
-
The weak US dollar trade is still on – stick with goldFeatures With little chance of higher US interest rates in the near future, the weak dollar trade is still on. John Stepek explains why, and the best way to profit.
