What’s Ahead for Gold & Silver in 2014?

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Segment One : Gold, Silver, Stocks Up Big This Week

Plus, Tom Cloud’s Weekly Market Update

A major negative trend in the market in 2013 – when gold retreated 28% and suffered the worst year in more than three decades – is now also showing signs of reversing.

This week, gold prices retook the $1300 level. Money is flowing into physical gold, along with gold ETFs and gold mining stocks.

Meanwhile silver climbed back up above $21, while platinum and palladium both gained more ground as all of the precious metals seem to be making up the ground they lost last year.

Tom Cloud – Precious Metals Advisor

Tom Cloud joins us for the latest in the gold and silver markets and shares some of the fundamental and technical factors that are affecting prices right now.

Tom Cloud:“We found out on Wednesday that the new ETF’s that allow exposure to gold in currencies other than the U.S. Dollar were launched, and that is incredible. If you look at the price of gold in all different currencies, the U.S. Dollar is at the bottom of the list when you look at performance. So, with the launch of these new ETF’s, we think this is a very bullish event for gold.”

Segment Two : China Poses Great Economic Threat to U.S.

Plus, 77 Reasons You’re Awful at Managing Money

The U.S. is not insulated from ill effects from the global economy. While the Fed’s poor monetary policies have been the source for much of the volatility in global markets, other economies are now so integrated with America that a crash within their economy can quickly lead to a crippling of the our economy… the U.S. economy.

Personally, I consider China one of the major threats to America’s future, both militarily and economically. Not only is the country rapidly expanding its military might, it is also attempting to unwind a $24 trillion credit bubble – which by all accounts must be the largest credit bubble in history.

Currently, China is attempting to drain this $24 trillion credit bubble slowly and methodically. How will they do this? Well, they are already doing it. Think about it for a minute. Just for kicks, let’s put you in charge of China’s economy for just a moment. You are staring at credit bubble of over $24 trillion. Everyone wants to borrow money. What could you possibly do to slow down the demand for borrowing in China?

You’d simply raise interest rates. China has done this slowly and steadily.

Now China’s economic system is opaque. It’s virtually impossible to know the mind of China. However, when you follow the money, you discover that China appears to be tackling its massive credit bubble with a gradual rise in interest rates to slow the borrowing.

If China mishandles this attempt at deleveraging, things could get ugly very quickly for the global economy.

Societe Generale – one of Europe’s largest banks –has warned that the negative economic effects of China’s massive credit bubble could cause economic growth to slow dramatically with annual GDP growth bottoming out near 2% per year.

Now realize, that’s a BIG drop from where China is now. For example, last year China’s economy grew by 7.7%. If Societe Generale is correct in their analysis, it could lead to absolute crash in Chinese stocks by about 30%. Copper prices could get cut in half along with a massive fall in crude oil prices.

If that happened, how do you think that would affect Mr. Bernanke’s “recovery?” And how do you think the new Fed Chairman Janet Yellen would respond to such a financial meltdown?

Ambrose-Evans Pritchard has a good article about this over at the London Telegraph online. In essence, his article bluntly points out that “the world’s central banks have no margin for error.”

I agree. And it is in this environment, friends, that you are investing your retirement money: your 401k, your IRA, your 403b, your 529 plans, etc. These are challenging times for investors.

Speaking of which, the Motley Fool put out an interesting article this week that we featured in Friday’s issue of the FTMDaily Briefing entitled:

Here are a few of the bullet points that I found very sad, but true.

Next, Jennifer Robinson is here to update our FTM Insiders on Trigger Trading activity for the past week. We sold out of four positions this week, including one stock which stopped out (JKS for a 4% loss). The other three stocks all made a profit and were ATLH for 1%, KEYW for 8.11%, and IDTI for 8.64%. It was a great week! We still have four stocks in play (including EWG up 1.21% and XYL up 2.75%), and are awaiting the trigger price on three other stocks.

Recent Trigger Trade Performance

Ticker	Buy Date	Buy Price	Sell Date	Sell Price	Days Held	Profit/Loss %
JKS	2/13/14	$31.15	2/14/14	$29.90	2	-4.01%
IDTI	2/11/14	$10.76	2/13/14	$11.69	3	8.64%
ATHL	2/7/14	$32.52	2/13/14	$32.86	5	1.04%
KEYW	2/5/14	$16.38	2/12/14	$17.71	6	8.11%

Recent Podcasts by Jerry Robinson

• PODCAST: 2024 Year in Review
• PODCAST: Year-End Market Moves (Stocks & Crypto in Focus)
• PODCAST: The Bitcoin Bull Market
• PODCAST: Gold and Silver Surge in 2024
• PODCAST: Day Trading in 2024
• PODCAST: Don’t Fight the Fed
• PODCAST: Smart Retirement Income Strategies
• PODCAST: The Swing Trader’s Mindset
• PODCAST: Market Mayhem – Unraveling the Recent Sell-Off
• PODCAST: Elevate Your Economy

DISCLAIMER: The above trading ideas are from my own personal stock watchlist and are for educational and informational purposes only. They are NOT specific buy recommendations. Trading stocks is risky and you could lose all of your money. Trade at your own risk. Jerry Robinson is not an investment advisor. You should always consult a trusted financial services professional before making any financial or investment decisions. READ FULL DISCLAIMER.

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