Gold and silver fell yesterday and I got several emails from people on the free email list angry and others in panic. I mentioned in my Monday thoughts on gold that I expected it to rally after the Fed meeting into the end of the year. Seasonally it has its best months in December and January, but that December rally typically doesn’t start until you get half way through December.
A Power Investor member replied to my email and sent me these charts of the past four years showing what happened. Take a look.
7:45 AM [EDIT – some people are emailing me telling me that they can’t even see these charts on this page! I see them so I don’t know what is going on and have no time to figure it out with people clicking the email I sent 15 minutes ago right now. But here is one chart of mine that shows what happened in the past several years, the circle areas are the December period we are now entering.]
So going by this you can’t necessarily say that gold will rally instantly on Weds after the Fed meeting, but it will start to either that day or within a few trading sessions.
In the end, though, people who think gold is crashing aren’t looking at how much gold and silver went up going into July. Markets don’t go straight up every week or every month and spend time consolidating after having big gains before going up again. Gold took back half its gains by the time it made its November low. That type of drop is typical for gold and silver too in a bull market.