After a difficult summer that saw gold prices drop, fall has been good for gold’s recovery. That should come as no surprise to anyone who watches seasonal trading patterns in gold. Over the last 15 years, gold has displayed an interesting pattern that shows when gold prices tend to reach seasonal highs. Traditionally, January was the worst season for gold price changes, improving through February and March.
Gold prices would then be more likely to hit lows throughout April and May, and remain below average until August, when the trend tilted toward better chances of season highs, peaking in November and December.
How Is Gold’s Seasonality Changing?
Over the last 5 years, that trend has shifted. Now gold prices tend to reach seasonal highs from January to March, while it’s more likely to reach seasonal lows from October to December. That means the end of the year can be a great time to invest in gold.
Chinese Lunar New Year vs. Indian Wedding Season
One of the reasons behind the shift in gold price highs may be the
increasing appetite for gold in China. In the past, Indian Wedding Season would reliably push the price of gold higher. It still does, but over the last 5 years, it hasn’t been giving gold a shove into seasonal highs.
Meanwhile, the Chinese economy has been booming for years and a growing middle class has a lot more money to invest, and they’re looking for ways to get it out of China by investing in Western real estate or purchasing gold. Gold jewellery is also a common gift for the Chinese Lunar New Year, and increasing demand is putting some of the shift in demand into the first quarter, rather than the latter half of the year.
Both economies are demanding more gold, but there are some marked differences. While demand for gold jewellery in India is up 16%, demand for gold coins and bars in China is up 30%.
Retirement Fund Demand for Gold
There’s also increasing demand for gold now that it’s accepted in both the US and Canada as part of your retirement fund. In the U.S., you can invest your 401k in gold ETFs or mutual funds, while in Canada, you can invest directly in gold bullion as part of your RRSP.
If you’re a Canadian gold buyer, head to Silver Gold Bull to learn more about buying gold as part of your RRSP. Not every gold dealer is qualified to sell you gold as part of an RRSP. Gold and silver purchased from Silver Gold Bull is eligible and can help you diversify your registered savings plan.
Gold seasonality is changing and it’s rewarding gold buyers who pick up bars and coins toward the end of the year. Don’t miss your chance to buy gold when prices are trending lower and ready to spring into new highs in the winter. Invest in gold bars and gold coins and get ready to see returns.
Great post! Thanks for sharing the knowledge and keep posting more.
Must say, great post regarding gold jewelry and tips to profit by making understanding rates. Keep posting articles like this!
Well, it was interesting to read this blog as I purchased gold several times but I never thought about its profit factor so deeply. Thanks for posting this blog and I hope you will be publishing more thoughts about gold soon.
Best Regards,
Sid Thomson
My husband would like to invest in gold coins and sell them for a higher price. Since I am not an expert in this, I never knew that gold prices are already reaching the seasonal highs. It’s also interesting to learn that, there’s an increase in demand for Gold, both in the US and Canada.
Gold should be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of gold can be volatile in the short term, it always has maintained its value over the long term. Gold rates in Middle East like QATAR is cheaper than many Asian countries.