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Unknown to most investors, gold prices move in a secret, predictable pattern. Here’s how you can exploit this pattern to boost your profits. Volatility is a friend, and yet many investors are so afraid of the word that they shy away from it altogether. The gold market is a perfect example. With a number of record peaks and quick pullbacks, the volatility in its price literally freaks the pants off of many would-be gold investors. I don’t blame them. Truth is, back before I understood it it scared me too. But here’s the thing... Unknown to most investors, there’s a way to exploit this volatility to your benefit. You see, like most investments the price of gold typically follows a cyclical pattern. Take a look at the chart below... As you can see, since 2001 the annual high in the gold price occurred between September and December every year but two, with five peaks happening in December. On the flipside, annual lows occurred between January and May every year except one.
This year, gold hit a low of $1,058 in February, and since that point it’s been trending higher. In fact, the metal is up over 16% from that low. If history serves us right – although nothing’s a guarantee – we’re on track to see a big move in gold in the next few months. Most likely with a peak coming in December. Sure, there will be ups and downs but the data shows us that we have about a 4 month window to lock-in more gains before gold retreats again. I’ll be back with more soon.
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