Investors in gold could see their assets surge in value during September, as the month traditionally sees a sharp rise in demand for the precious metal. Gold has seen an increase in value during September for 16 of the past 20 years, with prices jumping by more than five per cent in the past seven.
For all practical purposes, September has been the best time to buy gold in terms of its month-on-month price appreciation over the past four decades. Frank Holmes, CEO and chief investment officer at US Global Investors said, in a typical year, the price of gold in September rises 2.5 per cent above its August price.
And since 1989, the gold price has risen in 16 of the 20 Septembers, by far the best success ratio of any month of the year.
What accounts for this seasonal trend?
