Gold May Not Be Bitcoin, But Miners Can Still Make You Money – by Aoyon Ashraf (Bloomberg News – December 18, 2017)

Gold and silver prices haven’t had the best year when compared to industrial metals, and the outlook for next year looks muted at best.

The metals may not see the same gains as “gold 2.0,” a term used to describe bitcoin by one of its biggest advocates, Tyler Winklevoss, but industry analysts recommend investors take a look at the “seasonal trade” in gold and silver equities. Early in the year, those stocks tend to perform better, creating trading opportunities.

And for 2018, analysts are expecting gold and silver prices to repeat New Year’s rally trends, with positive returns most likely to come in the first quarter. In fact, the NYSE Arca Gold Miners Index (GDM) saw its best performance on average during the months of January and February, while September and October had the worst performance.

Goldman Sachs

The “January effect” is well known in the equity market for its strong seasonal patterns that are observed in many energy and agriculture commodities.

Bank’s analysis showed positive returns in first quarters in precious metals prices, particularly in platinum and palladium and some base metals.

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