Gold seasonality chart points to strong gains Sept through February

Of course, seasonality is just an average and not a guarantee that past performance will repeat.  However, physical buying typically increases during the back half of the year as India’s festival and wedding seasons kick in. Chinese purchases also tend to increase toward year-end. Traders take cues from these seasonal numbers and create additional buying momentum.

I believe it is wise to hold physical precious metals in your possession, especially as the geopolitical instability spikes and de-dollarization accelerates. This may be an opportune time to buy before gold and silver move into their strongest seasonal months.  Despite the lack of action over the past few years, gold’s fundamentals remain strong and signal plenty of upside ahead.

In addition to holding physical bullion in your possession, you may also want to consider holding a few of the best-in-breed junior mining stocks.  The greatest gains during uplegs can be found in this very volatile sector which is currently undervalued.  In fact, mining stocks are offering some of the best entry points (relative to the metals) that we have seen during this entire gold bull market.

Follow our views on the gold market and track which stocks we hold in our portfolio by becoming a premium member.