Who’s excited for fall and winter? If you’re a gold bug you should be warming up to the idea the biggest months of the year are forthcoming!
Palisade Research has analyzed gold acquisitions by month going all the way back to 1979. What they have found is nothing short of excitement during over the next six months.
Between now and January, for the past 38 years, gold has performed best in the second half of the year and into January. There are several theories as to why gold performs in this manner, but at the end of the day it doesn’t really matter.
As we reported a few days ago right now is one of the best times to be adding to your stack or beginning a new stack of physical gold and/or silver. Silver is actually, in terms of “technicals”, looks far better than gold. We pointed out there are forces at work that show the metals should move much higher from their current levels. With this new 38 year long analysis, this is more fuel for the fire.
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. Source
All of this means nothing if the bullion banksters want to monkey around with the “markets” as they are prone to do. We have seen, all too often, the people pulling the levers move gold and silver down in very violent moves. We also know these markets are rigged as proven in a court of law. All of this makes the history of the precious metals, as presented above, much more challenging to predict.
Will we see gold and silver move higher come this fall and into winter? If history is allowed to play it’s part and if the “technicals” hold up their end it should be a very exciting time to watch the metals. I have heard it said that $20 – $21 silver is not out of the question – this is not a prediction, just something that I heard from reliable sources. Personally, I would like to see silver achieve and hold $18/ounce and gold $1,300/ounce. I would be very excited about those levels being achieved, so you can imagine how I feel about silver breaching $20/ounce.
Stack ’em if you can.