Infographic: Bear vs. Bull Infographic. What’s Next For Gold?

What’s next for gold prices? Are you a bull or a bear about gold’s future? There are a lot of reasons to be positive or negative about the future of the price of gold. And don’t forget about inflation. Inflation plays a big role in the price of gold for investors.

Gold prices gained about 9% in 2013 and inflation was next to nothing. If you were a bull on gold at the start of last year, that big move higher must have been great news. Add that momentum into this year’s forwards looking forecasts and many analysts believe we could see gold prices skyrocket. They’re forecasting gains as high as 40% next year!

Now, if next year turns out like some expect it will be, where else can investors turn for more than 9% returns? The next place is typically into the stock market and that’s where we see a lot of people turn next. If next year really does end up like what some analysts are forecasting, investors will be clamoring to buy even more gold in 2014 and the next, and the next…

But before you go out running for buying physical gold or mining stocks next year based on these forecasts check this out first:

Gold prices went up about 16% last year, but if you factor in inflation, it’s closer to 9%. More importantly though – here’s an interesting fact – about two-thirds of the gains made by gold investors were offset by inflation.

And frankly put – it could happen again. And again until the day someone might actually realize they’ll never get to the next level.

As you can see, if inflation was next to nothing last year, it won’t be this year either. It might not even be next to nothing next year…

Gold prices are up 9% so far this year despite nearly nonexistent inflation. If there’s no inflation next year too that will surely put a damper on gold prices in the coming years, but it looks like that won’t happen.

Not with Greece defaulting and stoking fears of Europe’s banks; Syria’s civil war; North Korea testing nuclear weapons; Iran keeping hard at work on theirs; China slowing down (but still growing); America trying to manage its budget woes well enough to avoid the next debt ceiling fight; and rising tensions in the South China Sea, to name just a few reasons next year could be like the last.

Of course, that’s not necessarily bad news for gold investors. The price of gold really does rise when inflation creeps up, but it doesn’t always happen next. If next year turns out like some expect it will be, where else can investors turn for more than 9% returns?

The next place is typically into the stock market and that’s where we see a lot of people turn next. But before you go out running for buying physical gold or mining stocks next year based on these forecasts check this out first: Gold prices went up about 16% last year, but if you factor in inflation, it’s closer to 9%.

“Bear vs. Bull Infographic. What’s Next For Gold?” is brought to you by American Bullion and Visual Capitalist.