Investing in Precious Metals Remains a Sound Strategy in 2014

Gold Investment Outlook
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As 2013 comes to a close, many are optimistic that the New Year will continue with signs of a recovery. It’s coming up on six long years since the recession hit, and 2013 showed some of the first signs of hope. Though there are no guarantees, there are some indications of what you can do in 2014 to set yourself up for financial growth. Continue reading to learn why investing in precious metals may be as important in 2014 as it’s ever been.


Historically, investing in precious metals is always a wise choice when inflation runs rampant. Printing money always causes inflation of the current supply, as more money means all of it becomes less valuable. As such, many people resist the damage by investing in precious metals. Doing so anchors their savings to something real that can’t be devalued like paper currency.

Standard monetary policy for tough economies has always been to print money as a means of getting through. The idea is that this cheaper money will encourage people to spend and invest instead of saving their money until the economy recovers. It also allows quantitative easing, the process by which the government actually purchases toxic assets from the economy. In doing so, the idea goes, the market is free to continue working as if those toxic assets were never an issue.

Quantitative Easing Coming to an End

That said, most analysts believe that quantitative easing will be greatly reduced or even ended in 2014. It could even begin to taper by the first quarter. Fortunately, even this eventuality is good for those investing in precious metals.

With quantitative easing out of the picture, the inflated prices of bonds will finally come down, forcing many to sell theirs and return to more traditional options like investing in precious metals. This lack of government subsidizing will also force many markets to turn to precious metals, as well. Instead of people investing in precious metals as a mere anchor for their portfolio, many analysts believe it may return as an actual option for long-term growth.

International Markets

Investing in precious metals in 2014 is a good idea for many reasons and not all of them come from within America’s borders. Countries like China and India, the two most populated in the entire world, have seen huge middle classes emerge in recent times. One of the hallmarks of a middle class is expendable income that can be used on financial planning, like investments. There have already been signs that these middle classes will look to precious metals for at least part of their portfolios, just as their counterparts in the West do. Such large numbers of people buying precious metals could easily cause a legitimate spike in prices.

Advances in Technology

Though precious metals have traditionally been used for jewelry and ornamentation, nowadays you’d be just as likely to find them being used for all kinds of technology that our modern lives depend on. There’s no reason to think these advancements in technology will slow down in 2014. Of course, there’s even less reason to believe that the many years that follow will be bearish for technology, either. As more and more technology is produced, more and more precious metals will be needed for their operation. Furthermore, even if the world never invented or advanced any other forms of technology, the growing population would still demand more of what we already have. As a result, greater amounts of precious metals would be needed.

Overall, precious metals did not have a great year in 2013, though they still remained tremendous investments for a number of reasons. That said, due to a variety of factors, 2014 is shaping up to be a great year for precious metal investments.