SPDR Gold Trust (ETF) (GLD): Be Civilized and Don’t Buy Gold This Year

Goldman’s view is much grimmer, leading the investment bank to recommend that clients go short gold ahead of continued weakness. In its second cut of the year, Goldman dropped its 2013 price target to $1,545 and its 2014 target to $1,350, well below the estimate of many peers. Some of the reasons cited include the muted response gold prices have had to economic weakness and the potential for accelerated selling pressure as speculative investments are wound down.

Ultimately, I believe reality lies somewhere in between the views of the two investment houses, with the real possibility that another debt hiccup in Europe could serve as a catalyst to redraw the landscape. At current levels, gold remains speculative and better options exist. Even if you prefer not to liquidate your exposure completely, some trimming is indicated here.

The article Be Civilized and Don’t Buy Gold in 2013 originally appeared on Fool.com.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs.

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