Gold Seasonality – Is It Still Working?

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Presented by:Louis PaquettePublisher, EGS www.emerginggrowthstocks.cahttp://emerginggrowthstocks.blogspot.comwww.BlogTalkRadio.com/Louis-Paquette

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Question: In ONE WORD, what is the biggest challenge facing stock market investors and speculators?

UNCERTAINTYOver: Overall market conditions Interest rates Commodity prices Specific company performance Government intervention Odds of discovering a mineable economic deposit Competition Etc.

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Stock rise an average 7% per annum over time, but not consistently

There is a rhythm to asset price movement (cycles) from overbought to oversold, from overly optimistic to overly pessimistic

A contrarian can take advantage of this to boost returns and reduce losses

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Optimism

Pessimism

Stocks

Has risen 16 of past 20 Septembers September kicks off several of the planet’s most potent

gold-demand drivers 1. The post-monsoon wedding season in India, and Diwali,

one of that country’s most important festivals;2. Restocking by jewelry makers in advance of the Christmas

shopping season in the United States;3. The holy month of Ramadan in the Muslim world, whose

end in late September is marked by a period of celebration and gift-giving;

4. And in China, National Day celebration starting October 1 and the run-up to the Chinese New Year in early 2010.

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Source: Moore Research Center, Inc. www.mrci.com

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Sort of works, but it’s not the end all, you need to “play it by ear” and look for oversold and overbought conditions to enter or exit

Works due to Physical demand for jewellery – and as the bull market has emerged Physical demand has fallen while Investment demand has grown – therefore seasonality isn’t as strong now as before

The way I would use: if price at significant high/low and coincides with seasonal trend – then use it – if not, don’t

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Specialize in small caps $159/yr or $15.90/month PayPal www.emerginggrowthstocks.ca http://emerginggrowthstocks.blogspot.co

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Gold target this season: $1,300

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$300

$300

$150

$150

Gold Seasonality – Is It Still Working?

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