investing in gold

China Sends Bullish Signal for Gold Prices in 2014

china gold

In a stellar year-to-date showing, gold prices in 2014 are up 7.6% - compared to the Dow Jones Industrial Average's 3.9% drop.

Gold set a new closing high record for 2014 on Wednesday when it added $5.30 to hit $1,295.20 an ounce.

Pushing gold to a near three-month high this week was testimony from new Federal Reserve Chair Janet Yellen. Yellen made it clear she isn't about to make any abrupt changes to the central bank's pledge of a measured tapering of bond purchases. Additionally, Yellen said interest rates will remain near zero for a good while.

But what will continue to stoke gold in 2014 is this news from China...

Best Stocks to Buy Now: A Money Morning Weekly Recap

Best stocks to buy for the week ending Feb. 7, 2010: A robust two-day rally late last week helped the Dow Jones Industrial Average and the S&P 500 Index post their best week of the year, with gains of 0.6% and 0.8% respectively.

Despite the solid showing, the 30-stock index remains down 4.72% year to date. The S&P 500 is off 2.78% since the start of the year. And the Nasdaq, which rose 0.54% last week, is lower by 1.21% so far in 2014.

Indeed, this year has been marked by volatility, with the Dow swinging up or down at least 100 points in intraday trading on 25 out of 26 days since the start of the year.

Why Gold Is Up Today

2014 Gold Commodity Prices

Gold prices jumped $28 to a six-week high Thursday while the Dow fell more than 200 points in afternoon trading.

February gold ended the day up $25.80 to $1,264.50 an ounce. Spot gold finished up $28.10 at $1,265.50.

Precious metal traders cited short covering, bargain hunting, and technical buying behind gold's gains. Unquestionably propelling the yellow metal's ascent Thursday was the steep intraday 217.42 point, or 1.33%, Dow plunge.

This news out of India is really what was driving gold prices...

1,600 Reasons to Buy Gold Now

Investing in Gold 2014

Gold fell by 28% in 2013. That's a huge reversal of a decade-plus trend.

Between 2001 and 2012, gold managed positive gains every single year, a track record unmatched by any major asset.

The precious metal went from a low of $255 in April 2001 to a high of $1,900 in September 2011, for a peak return of 745%.

Since then, gold has given back 35% from its $1,900 high, leading many to call the end of the gold bull market.

But is it really finished?

By looking at history and numerous indicators, I've found a different story.

One that will jumpstart your 2014 profits...

Gold Prices Today Flat After "Flash Crash"

Gold Price trends this year

Gold prices were little changed at $1,238.80 in early trading today (Tuesday) after falling $30 an ounce Monday in mere minutes.

Trading in February Comex gold futures was halted for 10 seconds Monday when a suspected "fat-fingered" (aka erroneous) trade sent the contract tumbling more than $30 an ounce in just minutes.

Find out why here...

Newmont Mining (NYSE: NEM) Stock Will Shine Again

The Future of Gold Prices

Owning some gold has long been a part of the Money Morning investing philosophy. After all, gold offers some insurance against the dollar-debasing policies of the U.S. Federal Reserve.

One of the easiest ways to acquire the yellow metal is to buy a gold mining stock such as Newmont Mining Corp. (NYSE: NEM).

At first glance, investing in any gold mining stock looks like a lousy idea. Over the past year, nearly all gold mining stocks have plummeted along with the gold prices - but much further.

See how gold mining stocks will rebound here...

Gold's Shocking New "Pick and Shovel" Play

Ever since humans realized the intrinsic value of gold, we've constantly searched for - and perfected - ways to find more.

From early methods like panning and trenching, to lode prospectors hunting for rock outcrops and veins, to the invention of drill bits...

In modern times, we use increasingly sophisticated tools and techniques, such as seismic sensors, magnetometry, and gravimetrics to help locate potential gold deposits.

But, after thousands of years of digging for gold, the low-hanging fruit's already been picked. Most remaining deposits are becoming increasingly difficult to find, and increasingly low grade.

Now, a surprising, brand-new gold prospecting tool may be in the offing - one that's far less technologically demanding, and much less invasive.

It seems nature itself has found a way to extract gold from the ground.

Take a look at this picture...

Gold News: China Poised to Overtake India as Biggest Gold Consumer

Gold Price Drivers 2014

Demand for gold in China is skyrocketing. Thanks to an enriched and growing middle class, China's gold consumption will reach a record 1,000 tons this year - up a whopping 29% year over year. At this pace, China will soon surpass India as the world's biggest buyer of the yellow metal.

Imagine what this will do to the price of gold over the next few years...

How to Prepare for the 17% "Supertax"

“You never let a serious crisis go to waste… It’s an opportunity to do things you could not do before.” –Rahm Emanuel

The once unthinkable is quickly becoming probable.

At some point in the next few years, your assets could well become the target of a “Supertax” as high as 17%.

Last week, we talked about the need to buy “out of print” assets to protect our wealth from brazen government seizures.

I explained that quantitative easing (QE) was likely to get bigger, not smaller, and that you needed to become your own central bank.

The truth is, the writing’s already on the wall. We’ve seen it happen.

Cyprus’s “bail-in” cost numerous bank depositors more than 47% of their capital.

Poland’s “pension reform” saw private pensions raided to help lower the government’s debt-to-GDP ratio.

And Spain plundered its Social Security Reserve Fund to keep buying its own risky debt, when no one else would.

Dangerous precedents are being set, with chilling regularity.

More than ever, you need to be prepared…

© 2014 Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201, Email: customerservice@MoneyMorning.com