Gold is back in season

Gold investors "should really like August and September", says David Yoe Williams on TheStreet.com. At this time of year the price often gets a boost as demand for the metal picks up. Jewellery becomes more popular as people begin to prepare for India's wedding season, while Christmas and Diwali also take place towards the end of the year.

China's New Year celebrations then follow early in January or February. Around two-thirds of annual gold production is used for jewellery, and Asia accounts for 70% of jewellery demand.

Gold tends to do well throughout this half-year. A study by Seasonax, the analytics and charting group, shows that over the last 20 years the gold price gained an average of 8.6% between 6 July and 24 February of the following year; over the rest of the year it struggles.

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This statistic is an interesting reminder that gold is a commodity as well as a store of value.But chasing seasonal patterns for quick profits is never wise. Investors should continue to hold 5%-10% of their portfolio in the yellow metal as insurance against financial crises and a return of inflation.