Without a doubt , the primary catalyst for gold’s more than amazing performance was the lagging U.S. dollar and the Feds’ cuts that more than pointed out and emphasized and exaggerated that weakness. It is important to point out of course that the Fed’s cuts were not the only factor or factors. Most currency and precious metal market valuations result from a confluence of factors all coming together.
Gold perveys a seasonal trending. Even when at a time when gold was meandering in value around $ 500 sure enough the fall time of September to November were times of increases in the value of the precious metal “gold”.
Autumn is the biggest buying season for gold for a variety of reasons. Most of the world’s population indeed lives in the northern hermispheres. Fall time is harvest time for the agricultural sector , which is awash in cash. In the Asian countries , who over time have been more than burnt by paper currencies , especially during times of political strife and conflict, gold has a long standing tradition as the investment of best stability in value. Gold has always been the best choice for retaining investment values. Conservation of capital is always always always the first parameter.
India has long been the world’s largest gold consumers. 2/3 of the gross demand for the precious metal gold is for gold for jewellery. Unlike just being a fashion statement , in India gold serves not only as a fashion statement but also another role for its investment and monetary values. When brides marry in India the dowry is often given in lavish amounts of gold jewellery. This is not only meant to adorn the bride – but also to give a financial start to the young family – such as giving a down payment for a home as is done in North America.
Fall time is the most preferred time for weddings in India- mainly during the festive season of November and October. Hence a large portion of the demand for gold and gold bullion ( for jewellery) in one of the largest markets for gold – the country of India , is during the fall.
Ultimately economics if primarily based on supply and demand. Simply put the factors for gold demand greatly increase and come together in the fall time. Hence it is fairly standard to see increases in the price of the metal gold in the fall time period.
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