Gold and silver are hovering around even on this New Years Eve. As was the case last week trading volumes are thin and the marketplace is mostly quiet. After posting some decent losses yesterday, precious metals are expected to do little moving on one of the quietest days of the year.

As we bring 2013 to a close and look ahead to 2014, it comes time to reflect on what has been a less than stellar year for precious metals, especially gold.

2013, Year In Review

It is no secret that gold and silver have seen better years than the one that has just about passed us. Officially gold will end the year down over $400 while silver has seen its value nearly cut in half. There is not just one factor that contributed to gold and silver’s decline, but rather a plethora of factors that continued to occur throughout the year.

More recently, the decision by the US Federal Reserve to slash Quantitative Easing translated into increased investor appetite for risk. Over the last few weeks gold and silver have steadily declined because investors are seeking out riskier investments that will ideally lead them to more drastic, immediate gains. US stock markets have responded favorably to these investors too as both the Dow and S&P 500 have made consistent gains for almost three consecutive weeks. Any time investors are seeking more risk the safe-haven qualities of gold and silver are overlooked.

Earlier in the year, fiscal and geopolitical events in the United States also contributed to gold and losing some value.

As we head into the next year the prospect of gold and silver improving is not a guarantee in the least. With talks of further QE reductions possibly taking place throughout 2014, demand for safe-haven gold and silver is not likely to pick up anytime soon. It seems as though investors are riding this stock market high into next year and it will be interesting to see how long US stocks can perform as well as they have recently.