Immense Seasonal Buying Opportunity in Gold, Silver & Platinum Is Upon Us
Historically Speaking the Seasonal Pattern Persists
By David Mitchell
15th November 2020
The Outstanding Bull Market in Precious Metals is Vigorous and Structural
We often come across a viewpoint from our new clients who are of the opinion that all the world’s economic troubles have been caused by the impact of Covid-19 and believe that once we have a vaccine everything will return to normal. This assumption is wildly inaccurate and could not be any further from the actual hard truth.
We are in the jaws of the largest global debt crisis in economic history, which has been turbo-boosted by the Covid-19 outbreak in so far as it has brought down the world's economies in devastating unison. Mathematically, we are in a severely dire state, with global debt to GDP rapidly surpassing 340%, while debt in mature markets has surpassed 392% of GDP. Our global governments are now actively planning to instigate a truly enormous debt-laden fiscal expansion in 2021 onwards of truly historical proportions.
Debt is a double-edged sword, historically it is often used in political circles as a vote-soliciting policy argument to stimulate future growth, but fiscal discipline through the economic cycle is not only crucial but of paramount importance to the long-term health of the system. Persistently running ever-growing deficits year after year (as per the last 20 years) means that sooner or later the default point will be crossed whereby the snowballing cost of financing debt becomes an unaffordable burden for society today and straddling future generations as well.
I think it’s extremely important for investors and our clients in-particular to fully appreciate that all political parties across the globe favour quantitative easing (QE), debt and deficits, as well as artificially low interest rates. These policies are leading us into an eventual outright debt monetisation with horrendous eventual repercussions.
The truth is, no matter how you spin the narrative, no matter how the banks, the political parties or the media attempt to reinvigorate your optimism, the simple arithmetic behind the inexorable decline of the purchasing power of fiat-denominated assets is leading us all into complete ruin.
As Goldman Sachs Investment bank recently asserted, ..."the gold rally is just getting started - and sees a surge of more than +20% next year (2021)"...READ HERE. Dated 13th November 2020, analysts Mikhail Sprogis and Jeffrey Currie stated:
"The structural bull market for Gold is not over and will resume next year as inflation expectations move higher, the US dollar weakens, and EM retail demand continues to recover, and the Gold market will likely follow the same path as it did after the global financial crisis in 2008”.
Historically Speaking the Seasonal Pattern Persists
Big profits can be made in buying Gold, Silver & Platinum in November and into the December timeframe.
Without sounding too repetitive I have written exhaustively and advised my clients on the importance of taking the ‘added’ advantage of timing opportunities when investing into precious metals. There are highly distinguished, seasonally-driven cycle-buying occasions throughout the year. We have now walked directly into one of the most important and optimal buying opportunities of the calendar year, i.e. mid-November into mid-December.
But please understand we are firmly in the grip of a very dynamic secular bull market in gold and the precious metals and once invested we advise that our clients should firmly stay away from trying to time rallies and dips.
What I focus upon is helping new clients to understand not only the optimal times to enter this investment class but also an overlay of the macro-fundamentals that drive each metal. Over the next few years the revaluations in metal prices will become a lot more dynamic the later into this secular bull market becomes so timing buy opportunities become a lot less relevant.
As you can see clearly from the gold chart highlighting the last 5 years on page 2 and the silver chart below, an opportune time to purchase gold (and other precious metals) is from mid to late November into December. The exact same picture can be seen consistently in each of the last 10 years which is further exemplified on the next few pages.
CLICK HERE to download the full report and the enormous seasonal pattern of when to buy
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Disclaimer : The information contained in this website should be used as general information only. It does not take into account the particular circumstances, investment objectives and needs for investment of any investor, or purport to be comprehensive or constitute investment advice and should not be relied upon as such. You should consult a financial adviser to help you form your own opinion of the information, and on whether the information is suitable for your individual needs and aims as an investor. You should consult appropriate professional advisers on any legal, taxation and accounting implications before making an investment.