Gold seasonal sweet spot August and September is coming
Gold’s performance by month from 1979 to 2016 must seetable
August sees average return of 1.4% and September of 2.5%
September is best month to own gold, followed by January, November & August
by Palisade Research
Looking back at gold’s performance since 1979, August and September are big months for the yellow metal. What is the cause? No one really knows but there are some theories that have been thrown around.
The adage sell in May and go away is common in the mining sector. Investors are back from vacation and ready to deploy their cash in a big way. Concurrently, the largest financial crashes have occurred in September and October, investors are also buying gold to hedge their portfolios.
Indian wedding season is huge for gold, and if you have ever been to a traditional Indian, its easy to see why India is the World’s largest consumer of gold jewelry. Throw Christmas into the mix, and you have the perfect retail storm.
Lastly, the European Central Bank and 20 other European central banks are currently governed by a Central Bank Gold Agreement, which ensures all banks operate with transparency and do not engage in large uncoordinated gold sales. The Agreement dictates the limit in sales, and resets every September, meaning the market may see less selling activity.
In the 38 years we used for the chart, August had only 14 years of negative returns, while September had 13. Regardless if these theories are true or not, its hard to ignore the decades of data that suggest the best months of gold are yet to come.
Gold’s Best Months Are Coming Read here
GoldCore Comment
The precious metal’s ‘summer doldrums’ period is coming to a close. Traditionally seasonal factors often result in weakness in gold and silver,particularly in May and June. This frequently creates an attractive buying opportunity for those seeking to allocate funds to the precious metals.
The data is compelling as seen in the Palisade table above. However, it is important to realise that the seasonal data is just another indicatorand short term speculation should be avoided in favour of long term investment diversification.
It is important to focus on gold’s value rather than simply its price. Gold’s value is as an investment hedge and financial insurance against financial and monetary crises. There is a real of another global financial crisis in the coming months and in 2018 and hence the importance of owning physical gold and silver.
Owning physical coins and or bars in your possession and inallocated and most importantly in segregated accountswill continue to protect and grow wealth in the coming years.
Related Content
Gold Bullion Averages Biggest Seasonal Gains in September Over Past 20 Year Read here
Gold’s Sweet Spot Strongest Months Are August, September, November And January Read here
News andCommentary
Gold settles lower, ending 6-session streak of gains (MarketWatch.com)
Gold hits one-month high, eyes on Fed and dollar (Reuters.com)
U.S. Stocks Mixed as Dollar Stabilizes, Oil Gains (Bloomberg.com)
Gold settles lower, ending 6-session streak of gains (MarketWatch.com)
‘Shrinkflation’ has hit over 2,500 consumer products over the past five years (Telegraph.co.uk)
Source: US Funds
Too calm? Wall Street volatility collapses to lowest since 1993 CNBC (CNBC.com)
Crash in bond markets, Fed mistake are investors’ biggest fears right now, survey finds (CNBC.com)
Where Chinese Millionaires Want to Live (Statista.com)
Greed is no longer good bond boom comes to an end Guardian (TheGuardian.com)
Success isn’t just having lots of money Success is fulfillment (CNBC.com)
Gold Prices (LBMA AM)
25 Jul: USD 1,252.00, GBP 960.78 & EUR 1,074.59 per ounce
24 Jul: USD 1,255.85, GBP 962.99 & EUR 1,077.64 per ounce
21 Jul: USD 1,247.25, GBP 958.89 & EUR 1,071.39 per ounce
20 Jul: USD 1,236.55, GBP 953.63 & EUR 1,075.06 per ounce
19 Jul: USD 1,239.85, GBP 950.84 & EUR 1,074.83 per ounce
18 Jul: USD 1,237.10, GBP 949.47 & EUR 1,071.82 per ounce
17 Jul: USD 1,229.85, GBP 940.71 & EUR 1,074.03 per ounce
Silver Prices (LBMA)
25 Jul: USD 16.31, GBP 12.52 & EUR 14.00 per ounce
24 Jul: USD 16.50, GBP 12.66 & EUR 14.17 per ounce
21 Jul: USD 16.43, GBP 12.63 & EUR 14.11 per ounce
20 Jul: USD 16.18, GBP 12.50 & EUR 14.07 per ounce
19 Jul: USD 16.23, GBP 12.44 & EUR 14.08 per ounce
18 Jul: USD 16.17, GBP 12.41 & EUR 13.99 per ounce
17 Jul: USD 16.07, GBP 12.30 & EUR 14.02 per ounce
Recent Market Updates
Commercial Property Market In Dublin Is Inflated and May Burst Again
Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing
Millennials Can Punt On Bitcoin, Own Gold and Silver For Long Term
Time To Position In Gold Is Right Now says Jim Rickards
Bloomberg Silver Price Survey Median 12 Month Forecast Of $20
Bigger Systemic Risk Now Than 2008 Bank of England
Financial Crisis Coming By End Of 2018 Prepare Urgently
Video Gold Should Probably Be $5000 CME Chairman
India Gold Imports Surge To 5 Year High 220 Tons In May Alone
Silver’s Plunge Is Nearing Completion
China, Russia Alliance Deepens Against American Overstretch
Silver Prices Bounce Higher After Futures Manipulated 7% Lower In Minute
Precious Metals Are Best Defence Against Bail-ins In Economic Crisis
ImportantGuides
For your perusal, below are ourmostpopularguidesin 2017:
EssentialGuideTo Storing Gold In Switzerland
EssentialGuideTo Storing Gold In Singapore
EssentialGuideto Tax Free Gold Sovereigns (UK)
Please share our research with family, friends and colleagues who you think would benefit from being informed by it.
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