What will 2014 bring for gold and silver?

Posted | 13/01/2014 / Views | 1158
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There have been a number of articles written by experts in the last couple of weeks. So what are the trend calls?

- The big squeeze – China and other ‘strong hands’ bought all the gold out of ETF’s and Comex in 2013 whilst questions remain on how much is really in Fort Knox. At some stage soon, someone is going to ask for their gold and it won’t be there. Cue gold price explosion.

- Silver shorts – Whilst greatly reduced JPM and co. are still hugely short Comex silver and at some stage soon will need to cover them which many predict will see a major rally. With a gold silver ratio still around 62:1 many are looking to a reversion to the mean as well.

- Gold longs – JPM in particular are massively long Comex gold. Is this the year they clean up by ‘letting her go’?

- Consequences of QE taper – bond yields will rise affecting mortgages and debt servicing. The US ‘recovery’ will be found to be untrue or unwind and tapering will stop or reverse. People will lose faith in US currency and turn to gold and silver.

- Stock market bubble to pop – the realisation that ALL gains were from QE (see tomorrow’s news) will see the stock market crash when it slows. The logical flight will be to gold and silver.

- Some predict gold and silver prices could get a little worse before it takes off. Stay strong, buy low.