In fact, “now is exactly the time people should be thinking about a non-correlated portfolio diversifier,” said Rhind.
There could be another catalyst to lift gold as 2014 goes along: India possibly lifting its tariff on gold imports. India’s efforts to ameliorate its current account deficit by hiking tariffs on gold may have a played a part in moving the country down to the second spot in consumer demand last year, but the country’s current account situation has improved a bit in recent months. [Gold Looks for 2014 Rebound]
“It’s hard to predict Indian politics, but it is an election year there, so there’s a chance the gold tariff could be relaxed,” said Rhind.
2013 Consumer Gold Demand
Source: World Gold Council
Tom Lydon’s clients own shares of GLD.