Original Forbes article published on March 24, 2019.
If you’re looking at investing in gold to protect your retirement assets, you’re likely in it for the long haul. But that doesn’t mean that you’re oblivious to moves in the price of gold. After all, you want to buy when the gold price is as low as possible and sell (when you want or need to) when the gold price is as high as possible.
While technical analysis of gold’s price movements isn’t a guarantee of gold’s performance, it nonetheless can offer some important insights into how gold might perform. And based on gold’s past performance it looks like April will see gold move into new highs, at least according to gold analyst Bill Sarubbi.
Sarubbi’s graphs show that March, June, and October are traditionally the weakest months for gold. January and February are among the strongest, with September being the strongest. That conforms pretty well to what we’ve seen so far this year, with gold starting the year really strong and weakening slightly into March. If previous patterns hold, April and May should see strong growth. June should see slight losses followed by three straight months of solid growth.
Adding to the technical reasons for strong gold price growth the rest of the year are the myriad economic and geopolitical factors that will spur gold demand. Those include:
- The inverted yield curve predicting a path towards recession;
- The likelihood of a hard Brexit leading to increased gold demand from European investors;
- Continued gold purchases by governments and central banks;
- The ongoing trade dispute between the US and China; and
- The possibility of armed conflict over Venezuela, Iran, North Korea, or some other area in which the interests of the great powers collide.
While we’re facing a potentially scary time geopolitically and economically, investors can ride out the tide of negative events that are on the way by investing in gold to protect their assets. No investment asset has done a better job of maintaining investor wealth than gold, and gold will continue to play a protective role in the future. If you haven’t already invested in gold to protect your assets, now’s the time to do so, before prices start to rise.