2013: Gold, Silver, Equities and Bonds

[HognotinMemphis]

Gold ends 2013 down 29%.

Silver ends 2013 down 36%. Worst losses for gold and silver since at least 1984.

Regarding equities, the S&P 500 total return (dividends reinvested) is up 32% for 2013, just 2 hours before market closes for the year. This is just domestic equities of course. Many non-domestic equities have done this well or better, especially some European-based companies such as Philips, Seimens, Vivendi and Vodafone, all of which I own.

Regarding bonds/fixed income, the Barclays US Bond Aggregate index is down 1.92% for 2013, its first loss since 1999 and worst loss since 1994.

A nice understatement would be to say that it was not a good year to be invested in precious metals, either directly or through mining companies. While they have all lost 30% or more, the general stock market is up over 30%, a 60%+ swing. And if you are a conservative investor and think that bonds are always safer than stocks, then you suffered this year from not being invested in equities and never joined the party the past couple of years. As Buffett stated back in 2012, bonds should come with a warning label. In my opinion, it's still accurate today. At that same time, Buffett further quoted another successful investor by saying, "bonds promoted as producing risk-free return are now priced to offer return-free risk."

[Lanny]

Actually, 2013 was a fantastic year for me in precious metals.  I bought all year and have continued in 2014.  Know when to buy and Know when to sell of course buying a coin shop helped too!

[HognotinMemphis]

Actually, 2013 was a fantastic year for me in precious metals.  I bought all year and have continued in 2014.  Know when to buy and Know when to sell of course buying a coin shop helped too!

Buying into a declining market is usually a good thing for the long term. Just do not want to have a large position in it when it begins its 35% decline.

[pheine78]

I have started to slowly move into bonds (I think the market will continue to roll for another year at least, but the end is coming soon).  It isn't the time to buy precious metals yet, maybe by the end of year.  I agree with Lanny to extent, but I am just not ready to buy metals yet...ask me again in a few months.  I think they will sink quite a bit more.

[DeltaBoy]

Since I just use Precious metals as a hedge it worked out fine for  me  in 2013.