Gold’s seasonal rally is beginning

Seeking Alpha/Paul Franke

“Measured from the generational low in gold prices under $300 an ounce between 1999-2001, the best time of the year to own this hard money, store of value has been during the winter months of December through February. (Using longer-term data analysis over many decades, early December to late February has equally proven a terrific time to own gold.) In this article I will explore the bullish seasonal period now beginning, from December 13th to February 13th specifically. This 2-month span may be ‘the’ smartest time of the year to own gold. And, after months of price decline and renewed skepticism about gold, the odds look to favor a sharp upmove yet again this annual cycle.”

USAGOLD note:  We’ve called attention to gold’s seasonal inclinations in the past. In this article, Franke takes the historical record up to date with some observations on current market psychology. “Gold is increasing in value,” he says, “as a money printing hedge. As far as I can tell, Biden and the Democrats will side with the Federal Reserve’s weak outlook diagnosis and continue to stimulate economic demand through deficit spending, while printing new cash in 2021 to keep our economic future on track.”

gold seasonal chart 10 year averageChart courtesy of GoldChartsRUs.com • • • Click to enlarge


Repost from 12-15-2020

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