Monday, 26th June 2006 (3576 views)

According to the Canadian National Post, gold is set for its annual seasonal summer boom.

The newspaper reports that between the end of July and the end of September, the price of the precious metal typically rises due, in part, to purchases of gold by jewellery-makers who are gearing up for the busy Christmas and Diwali seasons.

Both of these holidays coincide with the strongest periods of gold jewellery purchases in the calendar.

Gold prices have gone up in eight of the past ten periods, according to stock statistics of the Philadelphia gold and precious metal index quoted in The National Post. The average gain per period over the past ten has been 16.6 per cent.

Gold mining companies have also seen significant rises in their stock, despite the recent decline in the metal's price. Canada's Newmont Mining Corporation has gained in seven of the last ten periods, at an average of 13.5 per cent.

Analysts hope this traditional period of growth in the metals sector will spark a recovery in gold prices after recent declines in the past few weeks as the market eased back from quarter-century highs registered in April and May.

 

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