Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Silver Could Provide Great Opportunity To Bank And Grow Stock Market Profits
By: Hubert Moolman

Gold Close to its Downside Target
By: Przemyslaw Radomski, CFA

Should Investors Worry about Trade Wars or Fed?
By: Arkadiusz Sieron

How to Trade in Silver
By: Chintan Karnani, Insignia Consultants

Russia Buys 600,000 oz Of Gold In May After Dumping Half Of US Treasuries In April
By: GoldCore

Gold Seeker Closing Report: Gold Dips While Silver Holds Steady
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 6 20 2018
By: Ira Epstein

More on COMEX "Exchanges For Paper"
By: Craig Hemke

GLD Update…Breakdown?
By: Rambus

How To Settle Down Your FOMO In Mining Stocks
By: Avi Gilburt

 
Search

GoldSeek Web

 
When Will Gold’s “Summer Doldrums” End? History Says Pretty Soon


By: John Rubino



 -- Published: Tuesday, 12 June 2018 | Print  | Disqus 

This has been a uniquely boring stretch for gold and silver – especially given all the things going on in the world that ought to light a fire under precious metals. In just the past few weeks, the US started a global trade war, Italy elected a populist government, emerging markets descended into yet another crisis, and inflation has risen from the dead – all of which would be expected to spook normal financial markets and send capital pouring into safe havens. But not this time, which leaves precious metals under the control of seasonal factors that have over the years generated the “sell in May and go away” rule-of-thumb.

So when do the summer doldrums end? Based on recent history, December is a pretty good bet. The arrows on the following chart mark the beginning of each year since 2014. Note how gold’s price frequently starts moving up either then or a few weeks before, in early December. This seasonal strength is due to Asian buying in anticipation of weddings and harvests, and though you’d think traders would anticipate – and therefore cancel – the cycle’s impact, it still seems to operate.

gold seasonality precious metals

Prior to 2014 the pattern was slightly different. Here’s a chart from Casey Research showing gold’s average performance for each month between 1975 and 2013. September was by far the best month to buy, with January the second best, implying a seven-month window beginning in August in which buying was rewarded with at least short-term gains.

gold average monthly gain precious metals

If the second pattern re-emerges, then we really don’t have long to wait at all. Maybe one more month and at most three, and gold bugs can start having fun again.

As always, though, deciding when to buy precious metals is just the first in a series of challenges. Choosing the right dealer is paramount (see here for a list of reputable ones), followed by whether to take delivery and store the metal at home or seek secure vault storage for gold and silver.

And then there’s the bullion vs mining stock question. The former is money which will hold its value over long periods of time (thus preserving your purchasing power) while the latter are investments that can rise by multiples of their original cost or disappear without a trace. Jay Taylor’s newsletter is a good source for intelligence on the explorers, the riskiest and potentially most profitable segment of the mining market.

 


| Digg This Article
 -- Published: Tuesday, 12 June 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus







 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.