September is the month of gold - September 11, 2016
September is the best month of the calendar for gold – believes Mark Hulbert, the columnist of MarketWatch. He adds that since the 70s (when owning bullion become legal) the “average return for the 11 other months combined is 0.6%, or barely more than a quarter of September’s average gain”. These tendencies are in contrast to stock market’s performance, where September is the worst month.
There are reasons to this, we might add. Bad times at the stock markets lead investors to find other places to put their money and one of the best choice is gold in the last years. Simply put, the money that flows out from the stock market goes into the gold market. Hulbert also believes that soon it might be a really good time to invest in gold.
Other interesting things has happened with gold. A month ago, MarketWatch broke the news about how China and Russia are heavily investing in gold to protect their reserves against dollar dominance. The article mentions that it would take quite a time for the two countries to step up their global rankings in their gold reserves, but still, they are buying.
In March, we also wrote about how the Chinese demand grew for gold. Analysts also believe that the demand will grow further globally. When we were looking at the gold market in May, seeing the growing demand and the slowing exploitation, we expected gold’s price to rise above $1300 from $1200. This is exactly what happened: in September the price is around $1353 for an ounce.
Disclaimer: Innovative Securities’ Profit Gold can help you to invest easily in gold. This analysis is for general information and is not a recommendation to sell or buy any commodity. Since every investment holds some risk, our main business policy is based on diversification to minimize threats and maximize profits. This is important when considering any investment.