Gold Market Update- How far will gold drop?

Back in February we warned that gold prices were projected to fall in 2013 & 2014 and we offered possible exit strategies to sell your gold. Today, the Fed minutes revealed that many central banks are considering to scale back on monetary stimulus. The strengthening U.S. dollar, labor market and improved economic outlook should have a negative effect on gold prices. An article published today on the Street discussed how Goldman Sachs forecasted a year-end target of $1,450 an ounce for gold, with it slipping even further in 2014.

Goldman Sachs released a report citing, "The turn in the gold cycle is likely already underway." In the report, Goldman Sachs predicts that prices for gold will decline well into 2014. Goldman Sachs analysts, Damien Courvalin and Jeffrey Currie, warn that gold prices could fall even faster than expected. They said, "In fact, we suspect that if indeed our forecast for further declines in gold prices proves correct, the fall in prices could end up being faster and larger than we expect."

Many analysts have recently raised the questions of whether this could be the end of the bull market for gold? Jon Bergtheil, Citigroup analyst said, "We have been concerned about gold and silver prices for some time, and the recent loss of momentum has concerned us even more." Investors who have bought gold are now asking what should I do, hold or sell?

The big question you need to ask yourself is if you have made a profit in your gold holdings or if you can take a loss. If you have made a profit you may want to consider selling off your assets and re-investing in other alternative investments that are neutral to the economy. However, if you are at a loss in your gold holding, you need ask yourself, do you think gold is going to go back up or if I sell now, can I take a loss? Many people have taken a loss in gold and used it as a tax write off. They then reinvest the proceeds into a better performing asset with a similar goal in mind. If you are considering the options of holding or selling your gold holding, contact one of our representatives who can help examine your gold portfolio and the options that you currently have in the market.

If gold prices fall, you will need to act fast. What is your exit strategy?

Exit Strategy for Your Gold

Gold ETFs:
If you own gold ETFs, you should be able to sell them just like you buy or sell any stock. This is the easiest way to get out of gold. If you are looking for other metals that do well when the economy recovers, we can help you reposition your investment.

Physical Gold:
If you want to liquidate physical gold, contact your RCW representative and they can explain the quickest way to liquidate your gold.

Tip: RCW does not charge storage fees to hold your gold until you sell it.
Gold & Silver IRA
If you have gold in your IRA it could take 3 days to weeks to get the gold out of your IRA depending on the company the IRA is held with. If you have gold in your IRA, and are considering selling it make sure you contact your RCW representative and we can help you expedite the process.

Who can you sell your gold to?
RCW can help you liquidate physical gold or IRA gold and we can store it for free until you are ready to sell.

For a free evaluation of your precious metals portfolio, call 800-347-3250.