The Price of Gold Just Bottomed

In the past few years, we have seen some strange activity in the gold price at the end of the year.

It may have just happened again.

If so, you need to read this…

A Blow-Off Period for the Gold Price

The gold price has had a rough past few months:

 

It traded above $2,000 an ounce in August for the first time ever. But it couldn’t maintain its momentum.

And that’s really not a surprise, because gold tends to drop at the end of the year.

In each of the past five years, the gold price has bottomed in November or December — as early as November 12 in 2018, and as late as December 22 two years before that.

The fourth quarter has served as a blow-off period for the gold price.

Then it regroups … and rises.

And once it rises, it makes some solid moves. Take a look:

Price of Gold December 2015-2020

(Source: Bloomberg, internal calculations.)

There are some important takeaways to glean from this chart.

First, the gold price is on the rise.

It has traded higher each year except for one. It’s up more than 70% from its low five years ago.

Next, the gold price has risen a lot each year in the months that followed its bottom.

The max first-quarter price occurred as early as January 24 in 2018, and as late as March 10 in 2016.

This means that over the past five years, gold has risen an average of nearly 14% from its bottom. It has happened in as little as 44 days (from 2017’s bottom) and as many as 103 (from 2019’s bottom).

And we just observed a potential bottom in the gold price on Monday this week.

After closing below $1,800 an ounce last Friday and again on Monday, gold popped higher. It’s following the script from the past few years.

If past is protocol and this is the bottom, you should expect to see the gold price rise double digits over the next few months.

How to Ratchet up Your Returns

GDX US Equity Prices 2020

(Source: Bloomberg, internal calculations.)

This table shows the price of the VanEck Vectors Gold Miners ETF (NYSE: GDX). It is a leveraged way to play the increase in the gold price.

The exchange-traded fund (ETF) owns 52 of the largest gold miners and royalty plays in the world. Newmont Corp. (NYSE: NEM) is its largest position.

When the gold price increases, it normally rises more. Over the past five years, GDX has risen an average of 24% between the fourth-quarter bottom in the gold price and its subsequent peak.

Or, if you’re feeling aggressive, you could buy into junior miners:

GDXJ US Equity Prices 2020

(Source: Bloomberg, internal calculations.)

The VanEck Vectors Junior Gold Miners ETF (NYSE: GDXJ) owns more names than GDX. It has generated an average return of 28% during the last five years.

There is some overlap in the holdings with GDX. But GDXJ generates greater returns by making less-concentrated bets. It also owns some names that are smaller and more volatile.

I should also note that last year was an off year for the ETFs. Gold outperformed both GDX and GDXJ.

December Should Be a Good Month for Gold

In the past, we’ve seen gold perform well at this time of the year. Expect that to happen again this year.

Government money printing is good for the gold price. Federal Reserve Chairman Jerome Powell just confirmed this week that his group’s response to the pandemic will be to “use our tools until the danger is well and truly past.”

Powell again said this of support from Congress: “The risk of overdoing it is less than the risk of underdoing it.”

That’s good for gold.

Over the past five years, you could generate a 14% return in about three months just by going long.

And if you’re looking to add some leverage, GDX and GDXJ generally outperform the yellow metal.

Good investing,

Brian Christopher

Editor, Profit Line

Previous Post
Next Post

Comments

netflix

Very interesting! They stare vacuously so that someone will buy them. Shandie Dante Marquet

netflix

Hi there. I found your blog by the use of Google at the same time as searching for a related subject, your site got here up. It appears to be good. I have bookmarked it in my google bookmarks to come back then. Pegeen Ignacio Danit

access

Great blog here! Also your website loads up fast! What host are you using? Mirelle Jeffy Noland

movies

Great work! This sounds like the software I was looking for for quite a while now. Ellynn Muffin Godart

movie online

Hey there. I found your site by the use of Google whilst looking for a similar subject, your site came up. It looks good. I have bookmarked it in my google bookmarks to visit then. Vera Ted Saul

torrent

Great blog here! Also your site loads up fast! What web host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as fast as yours lol Arielle Torry Squires

game of thrones

I loved your article post. Thanks Again. Keep writing. Elli Justin Castillo

altyazili

PREDIKSI SYAIR JITU Sydney Selasa, 21 Januari 2020 Lilia Maury Moia

720p

Hi there, I do think your site may be having internet browser compatibility problems. When I take a look at your web site in Safari, it looks fine but when opening in IE, it has some overlapping issues. I just wanted to provide you with a quick heads up! Aside from that, great site! Odelinda Alwyn Patterson

torrent

Very nice post. I just stumbled upon your blog and wished to say that I have really enjoyed browsing your blog posts. In any case I will be subscribing to your rss feed and I hope you write again soon! Gwyneth Guthrie Augusto

hindi movie

A round of applause for your blog article. Really looking forward to read more. Really Cool. Layney Quent Robbin

hindi movie

We have an enormous free DVD selection that you could download or stream. Bernice Ody Lunn

turkce

I would like to thank you for the efforts you have put in writing this web site. I am hoping the same high-grade website post from you in the upcoming also. In fact your creative writing abilities has encouraged me to get my own web site now. Actually the blogging is spreading its wings fast. Your write up is a good example of it. Jeannette Filberte Alain

bedava

Thank you for sharing your thoughts. I truly appreciate your efforts and I will be waiting for your next post thank you once again. Eryn Hilary Damarra

torrent

thank you very much. Encouragement accepted graciously Mirabelle Karim Teryl

720p

Pretty! This was an extremely wonderful article. Thank you for providing these details. Aggi Robinet Goto

online

There is definately a great deal to find out about this subject. I like all the points you have made. Shayla Brice Arthur

erotik

Keep up the good piece of work, I read few blog posts on this website and I believe that your site is very interesting and has lots of excellent info. Floris Abran Kuhn

123helpme.me

Excellent blog right here! Additionally your website rather a
lot up fast! What host are you the use of? Can I am getting your affiliate link for your host?
I desire my web site loaded up as quickly as yours lol

oxvow.com

appropriate article, i love it

storno brzinol

Very interesting information!Perfect just what I was looking for!

Twilvl

Izgykv – ed pills amazon Ybybvf

Ubbonk

dapoxetine 30mg pills – generic dapoxetine 60mg where to get tadalafil

Pdjzjz

over the counter ed pills that work – erection pills that work buy ed pills online usa

Fpatmh

buy prednisone online nz – 50 mg prednisone tablet prednisone 105mg

Oqkwry

provigil schedule – provigil generic provigil dosage

Xxvuqc

generic accutane costs – isotretinoin accutane how to get accutane without prescription

Lkvjms

bulk order amoxicillin in usa – amoxicillin brand name generic amoxil

Tvzqzk

generic vardenafil review – cedric vardenafil generic generic vardenafil suppliers

Wewzux

ivermectin for cov 19 – stromectol online canada ivermectin 4 tablets price

Rmpqzj

cialis online purchase in india – cialis 200mg cialis daily without prescription

Bcqvkv

ivermectin 12 – ivermectin 0.5 lotion india

Agiofs

lyrica tablets 50mg – canadian pharmacy meds review viagra from canadian pharmacy

Pmggid

amoxicillin 500mg capsules – purchasing amoxicillin online buy amoxicillina 500 mg online

Gépszállítás belföldön és külföldről Europa-Road

Hello my loved one! I wish to say that this post is amazing, nice written and include almost all important infos. I?¦d like to see more posts like this .

Mycxdy

20 mg sildenafil 30 tablets cost – what causes erectile dysfunction viagra pills 100 mg

Vcmucz

cheap generic cialis 5mg – cialis 5mg best price india where can i buy cialis in canada

Ubsyfl

ivermectin tablet 1mg – ivermectin brand ivermectin 8 mg

Yhrjzx

prednisone without prescription.net – prednisone deltasone canadian online pharmacy prednisone

Kxisuo

order modafinil – modafinil and alcohol order modafinil

Adowfs

order azithromycin 500mg – buy azithromycin 100mg buy zithromax 250mg

Osusig

lasix 20mg – buy lasix online europe lasix brand name in india

Altllq

clomid price – purchase clomiphene clomid pregnancy

Sjtmfu

viagra free delivery – order sildenafil from canada female viagra in india price

Gqqzuq

tadalafil tablets in uk – cialis order discount cialis online canada

RonaldVep

getting viagra in new york where to buy viagra over the counter ViagraCND100Mg – overnight pharmacy 4u viagra

Sfdrcp

ivermectin 3mg online – buy ivermectin for humans australia ivermectin rx

Womsej

sugarhouse casino online – playcasigam online casino for real cash

Eissld

best otc ed pills – latest treatment for erectile dysfunction over the counter ed pills that work

FloydSkene

amoxicillin online no prescription how to buy amoxicillin online – amoxicillin 500mg capsule cost

Uqlnhn

prednisone 5 mg pill – prednisone buy cheap india buy prednisone online

Njglta

25 mg generic viagra – rx viagra canada female viagra pharmacy australia

RonaldPlene

п»їorder stromectol online stromectol ivermectin for humans – ivermectin over the counter

Qqqqjr

cialis cheapest price uk – Cialis delivery tadalafil online us

Klgvez

india ivermectin – fda stromectol generic stromectol

Xfeuyp

dr oz erectile dysfunction pills – medication online pills for erection

Hfhosa

buy ventolin online – generic ventolin ventolin australia price

Ulfekf

cytotec over the counter drug – cytotec 200 mcg online buy cytotec online south africa

Eywuns

doxycycline 100mg over the counter – buy doxycycline medicine doxycycline over the counter

Vofble

neurontin capsules 100mg – neurontin generic cost levothyroxine 115 mcg

Yroxdj

how to buy viagra – sildenafil online purchase buy female viagra nz

of web hosting

Howdy! I know this is kind of off topic but I was wondering which blog platform are you using for this site?
I’m getting sick and tired of WordPress because
I’ve had issues with hackers and I’m looking at options for another platform.
I would be great if you could point me in the direction of a good platform.

Telqvo

order generic cialis online uk – tadalafil india 20mg

Jydjwa

vardenafil vardenafil – levitra pill where can i buy vardenafil

http://t.co/V4GSBluhrM

Keep this going please, great job!

http://t.co

For the reason that the admin of this website is working, no question very
quickly it will be well-known, due to its quality contents.

MauriceDen

stromectol order online ivermectin 2% – ivermectin new zealand

asmr and

hi!,I like your writing so so much! proportion we be in contact extra approximately your article on AOL?
I need a specialist on this area to unravel my problem.
Maybe that is you! Taking a look ahead to peer you.

scoliosis surgery when

A person necessarily help to make significantly posts I would state.

That is the first time I frequented your website page and
thus far? I amazed with the analysis you made to create this actual publish extraordinary.
Great process!

asmr this

Your style is really unique in comparison to other folks I’ve read stuff from.

Many thanks for posting when you’ve got the opportunity, Guess
I’ll just book mark this page.

Nljhzx

accutane 30 mg coupon – compare accutane prices where can i buy accutane online

MauriceDen

stromectol uk ivermectin for humans – stromectol tablets uk

Pyoowp

can you buy amoxicillin over the counter – buy amoxicilin 500 mg online canada antibiotics without a doctor‘s prescription

asmr their

Your style is really unique in comparison to other folks I have read stuff from.
Thank you for posting when you’ve got the opportunity, Guess I’ll just book
mark this web site.

the asmr

Its such as you learn my thoughts! You seem to know a lot about this, such as you wrote the e-book in it or something.
I feel that you could do with some p.c. to pressure the message
home a little bit, but other than that, this is great blog.

A fantastic read. I’ll certainly be back.

scoliosis surgery or

I don’t even know how I ended up here, but I thought
this post was great. I don’t know who you are but certainly you’re going
to a famous blogger if you aren’t already 😉 Cheers!

lasix generic

furosemide pill furosemide over the counter vot Glulp

furosemide 40

lasix 40 mg tablet price lasix 10 mg tablet price vot Glulp

lasix generic

buy lasix lasix 40 mg price vot Glulp

furosemide tablets 40 mg for sale

buy furosemide lasix medicine price vot Glulp

there quest bars

We’re a group of volunteers and starting a new scheme in our community.
Your website offered us with valuable information to work on. You’ve done an impressive
job and our whole community will be thankful to you. quest
bars http://j.mp/3C2tkMR quest bars

app.gumroad.com

Paragraph writing is also a fun, if you know then you can write otherwise it is complicated to
write. asmr https://app.gumroad.com/asmr2021/p/best-asmr-online asmr

tinyurl.com

Hello! Quick question that’s totally off topic. Do you know how to
make your site mobile friendly? My site looks weird when browsing from my iphone 4.
I’m trying to find a theme or plugin that might be able to fix this issue.

If you have any suggestions, please share.
Appreciate it! cheap flights http://1704milesapart.tumblr.com/ cheap flights

lasix price

lasix 500 mg price furosemide 80 mg tablets vot Glulp

Gaovwh

ivermectin 1 topical cream – stromectol human ivermectin 3mg for lice

coub.com

Heya i am for the first time here. I came across this board and I find It really useful
& it helped me out a lot. I hope to give something back and help others like you aided me.
scoliosis surgery https://coub.com/stories/962966-scoliosis-surgery scoliosis surgery

bitly.com

What’s Happening i am new to this, I stumbled upon this I
have discovered It positively useful and it has helped me out loads.
I am hoping to contribute & assist different customers like
its aided me. Great job. scoliosis surgery https://0401mm.tumblr.com/ scoliosis surgery

Jqpgbx

prednisone 5 mg – prednisone 250 cheap prednisone online

www.iherb.com

Hi! I just wanted to ask if you ever have any trouble with hackers?

My last blog (wordpress) was hacked and I ended up losing several weeks of hard
work due to no back up. Do you have any solutions to protect against hackers?

quest bars https://www.iherb.com/search?kw=quest%20bars quest bars

ivermectin canada

generic stromectol stromectol 3 mg dosage

ivermectin australia

stromectol 3mg tablets buy liquid ivermectin

Eyoptf

doxycycline 25mg tablets – buy doxycycline for dogs prednisolone without prescription

buy ivermectin cream

ivermectin cream canada cost buy stromectol

Tagsse

fda ivermectin – ivermectin 2% stromectol uk

Leave a Reply

Your email address will not be published.