October 16, 2020

If you’re thinking about selling gold or gold jewellery and collectibles, you should recognize the optimal months where the price of gold in Canada is highest.

After analyzing various data reports and charts, we’ve found three important months where the gold price reached a very strong position: August, September and November.

What is the price of gold in Canada month to month?

Taking a deep look at gold prices in Canada from 2010 to 2020, it’s clear that August, September and November stand out as impressive months. To just look at 2011, for example, August 2011 saw a jump in gold’s price by 15% compared to the month prior. In September, the gains were smaller (2.84%) but in November the price rose by almost 5%.

As some reports indicate, July is no slouch when it comes to gold price’s increases, but “gold performs even better during August rising 70% of the time with an average gain in August over the past 10-years of 2.3%,” as we learn here.

Another report echoes into this historical look: “Gold typically experiences strong growth in August, September and November, with historically poor performance during most months of the first half of the year. Gold’s relative strength during the second half of the year has been observed in 20 of the last 30 years.”

Getting to the root cause of what the price of gold in Canada is driven by means understanding how fluctuations are often motivated by demand and supply. Look at the historically strong performance of the precious metal during September, which is driven by India, a top buyer. With both Indian wedding season and the five-day Hindu festival of lights, Diwali, occurring in October, Indian gold buyers tend to cause a large pickup in demand for gold in September and early October.

Data compiled by The Perth Mint corroborated other reports, highlighting September and November as big-gains months, but also points out January performs well for the price of gold in Canada.  The report notes, though, that the rule doesn’t hold every year: “January for example, which on average has been the best month, once saw a gold price decline of -13.57%.”

How the price of gold performs month to month is dubbed seasonality, which is defined in this context as the tendency for prices to show recurring patterns at certain times during the calendar year. While seasonality doesn’t always drive price action, it represents annually-repeating behavior driven by sentiment and fundamentals. We humans are creatures of habit, right?  So the calendar year’s passage affects the timing and intensity of buying and selling.

Seasonality and selling gold

It only makes sense to learn about gold price’s seasonality swings in order to find the best time to consider selling gold and gold coins and gold jewellery. After all, why opt for an assessment during a month like March via a reputable gold buyer when you can wait for a month where the price of gold in Canada inches a bit higher?

That’s not to say every September, say, of every year will reward you with a higher return than any other month. You still have to be on top of the gold market and understand factors such as how the pandemic influences the commodity’s value.

Where should you go when you start thinking about selling gold? For years, Muzeum has been a fixture in this space thanks to its recognized and experienced specialists who help connect sellers with respected buyers, no matter the area of collectible.

On the flipside of it all, savvy investors can use the clear seasonal patterns gold has exhibited over the past 40 years to opt for strategic purchases when the market is the weakest. March is often the month when the price of gold in Canada is lowest, so finding a way to add bullion to a portfolio during that season could give investors some impressive returns.

What does buying gold in March has meant to past investors? Casey Research compiled a graph measuring how well gold performed by December in each period if you bought during the weak month of March:

 

Casey Research analysts when on to say: “Only the bear market from 1981 to 2000 provided a negligible (but still positive) return by year’s end for investors who bought in March. All other periods put gold holders nicely in the black by New Year’s Eve.”

Staying on top of what the price of gold in Canada can mean month-to-month is a strategic way to add another layer of intelligence on selling gold to the right buyer.

To get the most out of the gold collectibles and coins you’d like to sell, find the right time to sell your items to collectors who’ll give you the best return on your investment.

If you’d like to get a free assessment of your gold items, contact the precious-metals specialists at Muzeum anytime via our contact page.


Leave a comment

Comments will be approved before showing up.

Subscribe