Is August The Golden Month For Gold?
‘Gold Is Gold, Never To Be Sold’. And truly, since ages Gold has been one commodity which has managed to beat inflation and give higher returns apart from the usability quotient.
Gold as we all known holds a lot of traditional, religious and also some prestige-related values in India. People buy or gift Gold during ceremonies or as an auspicious beginning for various occasions.
Ever wondered, when is it the right time to buy Gold or which is period during any calendar year that gives maximum returns?
The festive season in India starts in August, with Raksha Bandhan, Ganesh Chaturthi followed by Dushhera and Diwali. Hence, Gold prices tend to head north during this period. The same can be ascertained by the below mentioned facts.
From my point of view in the last six years, the August month has been the most productive and wonderful month for Gold in terms of returns on investments.
A detailed analysis for Gold Prices in India in the last six years, indicates that Gold has notched the highest single month per cent age returns on two occasions – namely August 2013 – a stupendous gain of 17.6 per cent, and August 2011 – a similar performance – a gain of 17.4 per cent.
In fact it was August 2011, that Gold prices in India registered its life-time high. To be precise, the MCX Gold futures had zoomed to a high of Rs 35,074 on 28 August, 2011.
August is the only month in which Gold prices has logged more than 5 per cent gain on five out of six times. The 2008, 2010 and 2012 August months the returns stood over 5 per cent each.
Only in 2009, the MCX Gold August month returns were a little dis-appointing, up 2.1 per cent. So far this August, as of 6 August, 2014, Gold prices are up 2.9 per cent.
A deeper analysis reveals, that not only the month of August, but the third-quarter of any calendar year, i.e. the September quarter in which the month of August falls has also witnessed sharp appreciation in Gold prices.
The quarterly charts indicate that, the top three slots are held by the September quarters. Gold price during the September 2009 quarter had recorded its biggest ever quarterly gain in terms of per cent age – up nearly 37 per cent.
During the September 2011 and 2011 quarters, MCX Gold futures had logged superlative gains of 19 per cent and 18 per cent, respectively. So far this quarter, Gold prices have gained a mere 3.1 per cent.
On the other hand, the June quarter of year 2009 was worst quarter for the precious yellow metal, as the commodity collapsed over 24 per cent.
Similarly, June 2013 quarter also saw a fall of 12.7 per cent in Gold prices.
Based on the above mentioned statistics and facts, one can easily conclude that yes indeed August is one of the ‘Golden’ month for Gold prices in India.
Going ahead, will History repeat itself, and will we witness another gainful August this year and subsequently a superb September quarter. Let’s see what Gold does in the remainder of August 2014.