Research Excerpts

Gold: Bad Investment Or Great Buying Opportunity?

Posted on: Friday, May 30th, 2014

Following a huge $207 per ounce, 17% rise in gold prices to almost $1400 per ounce between December and March, gold prices have since given back more than two thirds of those gains and are currently trading at their lowest level in almost 4 months.

Is it time to stay far away from gold as an investment, or is this a great buying opportunity?

History suggests that it may be the latter.

The following is an excerpt from our June 2013 Global Seasonal Analysis report


Gold Seasonal Pattern Since 1977

The green bar on the chart at lower left on the previous page identifies June as the 10th seasonally strongest or 3rd weakest month of the year for gold prices (London PM fixing) since 1977. It represents a modest one-month seasonal decline from May, the 8th strongest month, but leads into a gradually-increasing period of seasonal strength that culminates in September, the strongest month of the year for the price of the yellow metal during this 37-year period.

Chart 20 of 24

Chart 20 of 24

The depth of the teal bar on the chart indicates that, on average since 1977, gold prices have declined by 0.18% in June. The red line shows that gold prices loosely adhered to their 36-year annual seasonal pattern during 2013 by bottoming in June, rebounding into August, and then declining in October.

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Global Seasonal Analysis, one of 8 different reports that we produce for subscribers at various intervals throughout the month,  displays and analyzes annual, quarterly and monthly seasonal trends for 17 global asset prices including equities, benchmark interest rates, foreign exchange, and key commodity prices based on historical data going back to the 1950s.

Asbury Research subscribers can view the entire report by logging into our Research Center.

Interested investors can request information about Asbury Research, including services and pricing, by emailing sales@asburyresearch.com or calling 1-888-960-0005.