← Back to All Videos

Positive Gold Trend in Autumn

Blog Aug 17, 2010

The price of gold has been on the rise for roughly 10 years now.  This trend has brought a lot of investment demand into the market.  Before this bull market started the demand mainly came from jewelry buyers.  Not so anymore.  Even foreign central bankers are net buyers of gold which is a major shift, since for years they have been net sellers.  But what does all this mean to you and me?  We need to look at the trends and ask ourselves if now is a good time to buy gold coins.

The following charts show what has gone in the price of gold for the last nine years.  I got these charts from arabianmoney.net.

It is obvious that gold has closed higher every year since the bull market began.  It is also clear that there have been ups and downs all along the way (sign of a healthy market).  But what is most intriguing is that in eight out of the last nine years gold has risen in the last 4-5 months of the year and many analysts are expecting it to do the same this year.  2008 was the only year that this did not occur.  This was due in part to liquidations in gold to cover losses in equities and in part to a rallying dollar due to investors seeking a safe haven from falling equities.  Could this happen again in 2010.

It could if we see equities correct negatively in a major way, which would initially have a negative impact on gold, but ultimately losses in equities eventually seem to make gold rise.  So I expect any correction in gold to be temporary.

It would seem to me that there is a pretty convincing case (based on these charts) for gold to rise in the fourth quarter of this year.  Gold is currently at a nominal high but nowhere near a real high (based upon inflation from 1980 to present), which analysts estimate to be around $2,300 per ounce.  Not to mention we have not seen a blow of top that usually occurs during the third phase of a bull market.

According to these charts gold’s rise in the last few months of the year (excluding 2008) have averaged 13.17%.  That is a very nice gain for those that have capitalized on it.  I think everyone should own gold as financial insurance, but that doesn’t mean that you can’t capitalize on growth too.

Thumbnail Photo We believe that everyone deserves a properly developed strategy for financial safety.

Lynette Zang

Chief Market Analyst, ITM Trading

Sources & References In This Article

Similar Posts

Blog Jan 3, 2024

The Great Taking: Understanding the Shift in Global Debt | A Deep Dive into Financial Collateral

Learn More
Blog Dec 19, 2023

Is the U.S. Dollar in Crisis? Exploring Currency Markets, Inflation, and Bank Downgrades

Learn More
Blog Dec 8, 2023

From Treasury Outflows to Inflation and Consumer Anxiety, how far will it go?

Learn More
Blog Dec 8, 2023

Your Safety Is Not Their Concern

Learn More
Blog Sep 29, 2022

What’s Driving Energy Prices Up? Will the Crisis be worse than the 1970s?

Learn More
Blog Sep 15, 2022

Underneath the Surface: Recession or DEPRESSION?

Learn More
Blog Jan 9, 2020

REAL OR FAKE GOLD, BIG VS SMALL BANK DEPOSITS… Q&A with Lynette Zang and Eric Griffin

Learn More
Blog Nov 28, 2018

ENTERING THE MINEFIELD: Is Your Armor Ready? By Lynette Zang

Learn More

Not Sure What Works for You?

Our team has over a century of combined experience in guiding our customers to the best products is for their wealth protection and preservation goals. Call us today.

888-696-4653
or schedule a call

Schedule A Strategy Session

Get Your Free Protection Guide

Stay Informed

Receive the latest updates regarding the economy.