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As we begin 2014, fewer investors are hoping to find their fortune in gold.
Michael Shaoul, the chief executive officer of Marketfield Asset Management LLC, which oversees about $17 billion, told Bloomberg, “Gold is something we avoid. The developed economies are growing, and equities remain very interesting, so there is really no reason to be in gold.”
It is the biggest annual loss for gold in over 30 years. In 2013, investors pulled $38.6 billion from gold funds. In 2013, the price of gold fell by 28 percent, and investors questioned whether investing in gold was a necessity. They looked at acceleration of demand and how it affects investment strategies as they move forward into 2014.
Nick Hungerford, chief executive and founder of investment management company Nutmeg, told CNBC, "It's going down further. We think next year gold could hit $1,000 an ounce, and that will just be a continuation of a trend which is forced and forced and forced by more people wanting to get back into equities and out of commodities."
Photo courtesy of Wikimedia Commons.