Last year (2013) we saw Gold drop by 20%, and it rapidly became the whipping boy of precious metals. This led many investors to question their investments. However we are seeing signs that precious metals are about to turn which would make favourable circumstances for people looking to re-enter at the lower end of the market, and a great opportunity for anyone taking their first tentative steps into the bullion market to build new positions.
To second guess the precious metals market is always difficult and one should bear (excuse me) in mind that these prophesies are geared to a long term position!
Firstly, gold prices took an enormous hit last year so they should have finally bottomed or very nearly. This in itself presented a great long term buying moment, and still does, if you buy now and hold your position for the long haul.
Secondly, both Asia and the Eurozone are still in very troubled waters which creates a larger risk profile in the world economy, possibly leading to more stimulus.
Thirdly, the demand for gold/precious metals is poised to rise as fiat currencies are printed into oblivion and so continue to lose value. We are still in a bear market which hasn't yet flipped (and I'm not about to call it here!) but at some point it will, and when it does, the light will change green on a 'dime' as they say in the U.S.! Keep your wallet handy!!!