NEW YORK (January 14, 2014) – Jeffrey Nichols, Senior Economic Advisor to Rosland Capital (www.roslandcapital.com), had the following comments on the current gold-market situation and outlook:
It’s been a rough few years for gold investors – but despite the yellow metal’s fall from grace, I remain solidly bullish on gold’s long-term prospects. In my book, the metal’s price will, more likely, reach $3,000 or even $5,000 an ounce in the years ahead than sink beneath $1,000 an ounce.
That said – and despite gold’s recent resiliency – the short-term risks most certainly abound. In other words, gold is not out of bear country just yet.
Gold tumbled some 30 percent last year, its worst annual performance since 1981. From its historic high in September 2011 to its 2013 low point, the metal is off nearly 40 percent – and, recently its been trading around 35 percent below its all-time high.
With losses of this magnitude, it’s easy and maybe appropriate to label the last 28 months a bear market.
Nevertheless, – and not withstanding the very real possibility of further short-term declines – I remain solidly bullish.
In fact, the case for gold and the reasons for maintaining or increasing one’s core gold holding within a diversified investment and saving program are as strong as ever.
I advocate investors maintain a long-term core position in gold – physical gold in bullion coins – of five to 10 percent of one’s investment assets and maybe more for some investors. Today, with gold off so much in the past couple of years, it certainly seems sensible to take advantage of dips to rebalance one’s portfolio holdings, reducing appreciated equity assets and rebuilding depreciated bullion holdings.
About Rosland Capital
Rosland Capital LLC is a leading precious metal asset firm based in Santa Monica, California that buys, sells, and trades all the popular forms of gold, silver, platinum, palladium and other precious metals. Founded in 2008, Rosland Capital strives to educate the public on the benefits of investing in gold bullion, numismatic gold coins, silver, platinum, palladium, and other precious metals. Rosland also helps people who wish to protect their wealth by including a gold or precious metal-backed IRA in their asset portfolio. Click here for more information.
About Jeffrey Nichols
Jeffrey Nichols, Managing Director of American Precious Metals Advisors and Senior Economic Advisor to Rosland Capital, has been a leading precious metals economist for over 25 years. His clients have included central banks, mining companies, national mints, investment funds, trading firms, jewelry manufacturers and others with an interest in precious metals markets.