The year 2013 was a forgettable one for gold investors as they watched the precious metal sink 27% after a remarkable bull run lasting nearly a decade. When prices reached $1,200 levels some time last year, most experts predicted that the gold rally was over.
So far this year, those predictions have not turned out to be exactly right. Gold has managed to buck the trend, rising 10.4% year to date as emerging market economic weakness combined with rising geopolitical tensions revived its status as a safe haven.
Gold investor and strategist Eric Sprott, who has steadfastly refused to buy the theory of erosion of investor faith in precious metals, and has instead alluded to central bank manipulation as the reason behind the 2013 price fall (read his post at www.zerohedge.com on January 17), is today more bullish than ever about gold. "The price of gold and silver will both hit new highs in 2014," he said in a blog post on January 9. "The price of gold goes north of $2,000, and silver will quickly go over $50. When it does, it will get a little crazy."