Seasonality is observable in a wide variety of variables. In business, sales, production, inventory, man hours and the best time to discount can be at least partially predicted by seasonal effects. Gold is no different.

The recent major rally in gold is now experiencing a correction, so it is time to take a look at how gold stocks compared to a number of other gold trading vehicles.

Given that gold has hit our target of $1800 we feel it is appropriate to review our outlook on the gold market, the state of key factors that influence gold prices and possible trading strategies going forward.

In 1924 John Maynard Keynes referred to the gold standard as a “barbarous relic”, but we think the new barbarous relic is using gold stocks as a trading or investment vehicle in an attempt to benefit from rising gold prices.

Despite some calling for an explosive summer rally in gold, prices fell again this week on the back of easing concerns over Greek sovereign debt as the Greek parliament successfully passed the austerity legislation required to access additional bailout funds.

Asset price bubbles have occurred since the beginning of financial markets and will continue to do so as long as there remains a marketplace for assets to be traded. A key property of a bubble is that is it near impossible to identify with certainty before it pops, but once it does pop the bubble is apparently obvious to everyone. In our opinion, only those who risk capital and profit betting against a bubble can claim to have correctly identified one.

During the first nine years of this gold bull market, gold prices moved with a near perfect inverse relationship to the US dollar.

The ability to produce successful results and successful rhetoric are two very sought after and useful skills, but despite their stark differences […]

The ability to produce successful results and successful rhetoric are two very sought after and useful skills, but despite their stark differences […]

Gold investors tend to focus overwhelmingly on the relationship between the US dollar and gold, citing that a lower dollar leads to […]

It is generally accepted that the recent financial crisis was brought about by excessive borrowing due to cheap and easy credit, and […]

Gold prices embarked on a massive rally recently, rising from around $1210 to $1380 in just two months. Simultaneously the US index, […]