It is an old saw in precious metals trading. Sell in May and Go Away. That was the traditional wisdom, and I even saw it repeated during the dip a couple of weeks ago. However, if you are still holding your stash, you may want to rethink that traditional wisdom this year.
James Turk says that the logic does work about 75% to 85% percent of the time. It works most of the time, but that does not, as he admits, work all of the time. In general, the 1st and 4th quarter are stronger, while the 2nd and 3rd quarter are softer. Now we did reach a peak in March which would conform to the logic, but we are net getting a clear pattern of any sort of bullish market yet. In fact, so far this year, a sale in March and repurchase in April would have been a great strategy. But if you, like me, missed the March boat, keep your eye out for the next one.
A weaker dollar, more expensive oil, and a stream of financial problems are supporting the price of your shiny stuff. Do Your Own Due Dilligence, but if you can hold onto your silver and gold this summer, consider it strongly, despite conventional wisdom. A gold or silver sale in May, may just be a sale you regret by July.
gold, silver, precious metals
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