Tuesday, July 6, 2010

Gold Seasonality

Be wary of experts suggesting that July and August are two weakest seasonal months for gold. It's not true. The time frame of July and August is neutral at best from a long-term seasonal perspective.

1925-2009 Seasonality:


When seasonality is further refined into the second year of the four year cycle, a must when doing comprehensive seasonality analysis, the characterization of the July and August time period turns from neutral to very positive.

1925-2009 Seasonality with the Second Year of the Four Year Cycle:


Fear of holding gold is easy to sell into price weakness. Don't let negative seasonality arguments erode confidence in this secular bull market.

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