Wednesday, August 12, 2009

August is buying time for gold - Financial Post

It is not always wise to invest in anything based on "seasonal" patterns, as 2008 showed pretty clearly. But that said, August is traditionally an excellent time to buy gold. And Raymond James analysts Brad Humphrey and Bart Jaworski pointed out that gold has tracked its seasonal pattern very closely this year — it did well in the winter, sold off in early spring and rebounded in May.

"This seasonality has historically provided excellent buying opportunities early in [the third quarter] as demonstrated in seven of the past eight years," they wrote in a note to clients.

They recommended that investors take advantage of any weakness in gold or silver prices over the next several weeks to buy equities. They pointed out that gold demand usually picks up from September onwards as the wedding and festival season in India begins, and investors return from holidays and get back to work.

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