Gold News

Buying Gold in June

Might this summer be your last chance to Buy Gold for three figures...?

don't own enough gold, writes Jeff Clark, editor of Big Gold for Casey Research.

Before you tell me I'm wrong, let me ask it this way:

  • If inflation returns, or even hyperinflation...
  • If the economic crisis persists and gets worse...
  • If uncertainty and fear continue, and chaos and rioting begin...
  • If stock markets languish or suffer another meltdown...
  • If the recovery spending of the world's governments proves futile... 
  • If government interference in the economy continues to increase...
  • If the value of the U.S. dollar takes a major fall...
  • If world recovery from the current recession/depression takes years...
  • If you're still wondering whether you have enough "safe" money...

...would you feel you own enough gold?

If all those things come to pass, I suspect many of us, including myself, would wish we had a few extra Gold Coins or bars stashed away.

So let's assume you answered "No" to my question and need to add some ounces to your now a good time to Buy Gold?

Before glancing at the chart below, if you had to pick the month with the weakest average gold price, which would you select?

In our current 8-year bull market, June has seen the lowest return for gold. In other words, it's been, on average, one of the best times to buy.

How does this compare to the bull market of the 1970s?

In the last great bull market, summer also was a good time to Buy Gold (although April was even better).

And what about Gold Mining stocks?

Since 2001, July and October have been the weakest months for Gold Mining stocks, as measured by the AMEX Gold Bugs Index, and the best times to buy.

However, keep in mind that these are price tendencies and not certainties. There were Junes when gold was up, and some Julys when gold stocks were up.

Meaning you should avoid using this chart for trading purposes or in anticipation of an immediate gain. Instead, use it to prepare for possible Gold Price weakness ahead if you agree with us here at Casey Research that the long-term bull market has legs to run yet.

And if the weakness shows up, treat it as a buying opportunity and add to your holdings to position yourself for the next leg up in the bull market. Consider that this summer could be the last chance to Buy Gold for three figures.

Don't lose sight of where we are at this point in the recession – in an intermission in the bad economic news. When it becomes apparent that the good ole days aren't coming back, sentiment – and markets – could move rapidly. Gold is one of the best forms of capital that can protect you in a financial Armageddon. That gold was up in 2008 is a reminder of its protective power.

How much gold should you have? Continue to accumulate physical gold until you can honestly say you don't care how many dollars Ben Bernanke prints.

Doug Casey is a world-renowned investor and author, whose book Crisis Investing was #1 on the New York Times bestseller list for 29 consecutive weeks, a record at the time.

He has been a featured guest on hundreds of radio and TV shows, including David Letterman, Merv Griffin, Charlie Rose, Phil Donahue, Regis Philbin, NBC News, and CNN; and has been the topic of numerous features in periodicals such as Time, Forbes, People and the Washington Post.

His firm, Casey Research, LLC., publishes a variety of newsletters and web sites with a combined weekly audience in excess of 200,000, largely high net worth investors with an interest in resource development and international real estate.

See full archive of Doug Casey articles

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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