When to Buy Gold // seasonal investing patterns // seasonality trading strategy

When to Buy Gold // seasonal investing patterns // seasonality trading strategy


When to Buy Gold // seasonal investing patterns // seasonality trading strategy David Moadel welcome to looking at the markets with
David Modell wanted to talk about gold when’s a good time to buy gold well I’m
not talking about day trading today I’m talking about buying and holding some
gold maybe for a swing trade a few months something like that or perhaps
even for long term because even if you’re gonna hold gold for years you
still want to get in at the right time at a good price you want to buy at a
lower price and you want to buy at a time when you expect it to go up no
matter what your whole time is well let’s talk about that I’m gonna put some
links in the description of this video here’s one it’s from equity o’clock calm
I want to give them credit and it’s a pretty cool website they have a lot of
seasonality charts here and here is a seasonality chart for gold or gold
futures which reflects gold prices and notice that at the toward the end of the
year gold tends to go up we see that alright
and notice in the beginning of the year as well so what months are best if
you’re going to go buy seasonality well notice that September is fantastic in
terms of seasonality for gold or at least gold futures prices and also
January look at that big big move in January and the timeframe here is for 20
years so this is a pretty big range here alright so it looks like September and
January are great months and then if we go over to and I’ll put this link in the
description of the video as well this is from Casey research calm I like these
guys as well they have good charts here and look again September and January are
really fantastic and this is average gold performance since 1975 this is a
little bit older of a chart but still it’s over a long period of time and it
still reflects monthly seasonality patterns or trends and we see September
and January are really great when we look at this one
we see some other great months as well looks like November is really strong
looks like February might be really strong but the one or two I should say
that they both have in common are September and January they both agree on
that one now why September and January well there
are a number of theories behind that I think the strongest one that I’ve seen
is that there’s a lot of fear surrounding October let me think about
it think about the stock market crashes that occurred in October of 1929 October
in 2008 October of 1987 it’s burned into people’s memories especially if they’ve
been investing for a long time that October can have a lot of problems in
the stock market in the the Dow and the S&P and so on and so that’s one possible
reason that people load up on gold perhaps as a protective or hedging
measure in September in anticipation of October and also February is known as a
weak month seasonally speaking for the stock market
for the Dow the SP and so on and so that could account for why people Lo and
people and or institutions load up on gold in January perhaps they’re
anticipating a week February just like perhaps they load up on gold in
September in anticipation of a week October how much truth there is to that
I don’t know for sure but that seems to me at least right now as a possible
explanation and we we have September coming up very soon that’s why I’m
putting this video out now but no matter when you’re watching this these are
seasonal patterns to think about if you’re going to get into gold and I
certainly have no problem with people purchasing precious metals for a hedge
against a long equities portfolio I don’t think it’s a bad idea at all of
course you have to make your own decision about these things but if
you’re going to do it why not do it at the right time and while I’m making this
video September’s coming up very soon and so that’s something to think about
when you look at these charts okay so I want to give thanks to equity clock
comm and Casey research comm links are in the description of this video and if
you’d like some help putting together a trading or investing plan my name is
David Modell you can email me anytime at David Modell at gmail.com hey if you
like this video if it made you think if it gave you an idea or two please give
this video a thumbs up on YouTube and leave comments what do you think about
Gould do you think it’s a good way an effective way to hedge your portfolio
and is there a time that you like to buy it
are you a stacker of gold or silver or both and if you have not subscribed to
my youtube channel yet why don’t you go ahead and do that please subscribe that
way you can receive the latest updates on my financial educational videos thank
you so much for watching and listening and I’ll talk to you again soon

7 Comments

  1. Thank you for turning us onto the equityclock website. I always think of the holidays in India when thinking about gold because those holidays create great physical demand…

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