"Gold is now looking stronger; it is time that investors have gold in their portfolios," says Curtis Hesler. In the The Professional Timing Service, he looks at gold's seasonal patterns.
"I think they will rush to commodity-based assets because of the serious underinvestment phase the commodity sector is involved in now. This will lead to shortages and very high prices down the road in all commodities.
"Once the dollar begins to roll over, gold will be an instant benefactor. It is already looking stronger in my technical work, and it is time that investors should have gold in their portfolios. I still recommend that you put new money into the major gold miners only.
"We are approaching an interesting seasonal period for gold. Years ago, the Stock Trader's Almanac used to specify a seasonal trade in gold.
"Their study showed that if you bought ASA Ltd. (NYSE: ASA) at its low in November and sold it at its high in the first quarter of the next year, you would have averaged a gain of 87.8%.
"Now, I am not recommending that you buy ASA, and I realize that one cannot pick the exact high and low ahead of time for this seasonal move.
"The point here is that there is a strong seasonal tendency for gold mining stocks to rally from lows in November to highs during the first quarter of the following year; and often, the lows will come in around Thanksgiving if not just before. The gold stocks seem poised for such a move this year.
"As oversold as the mining stocks are against the price of bullion, this year's rally just might be surprisingly spectacular. I have multi-week cyclical lows coming due soon also.
"The stage seems to be set for a gold rally, and it just may well be accompanied by a significant top in the dollar. My favorites include Kinross (NYSE: KGC) and Goldcorp (NYSE: GG)."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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