Obviously this is really exciting today since we are now on the verge of gold's biggest seasonal rally of the year. But remember that seasonals are a tailwind, a secondary indicator. So if gold was overbought today and greed abounded, the bullish seasonals could easily be overridden. But thankfully it is not, indeed just the opposite has occurred. Gold is deeply oversold today and sentiment is horrendous. Excessive levels of both fear and frustration have conspired to create an explosively-bullish sentiment mixture.

I've been discussing these bullish gold, silver, and PM-stock technicals lately in our acclaimed monthly and weekly subscription newsletters. With primary and secondary indicators all lining up and calling for a major gold upleg in the coming months, we've also started adding new PM trading positions. This week's excessive selling has created a very-high-potential buying opportunity that we are exploiting. If you want to see exactly how we ride this thing, and have the chance to mirror our trades, please subscribe today!

The bottom line is gold does have strong seasonal tendencies. Even though gold isn't grown like wheat, the passage of the calendar influences gold investment demand across the globe which directly impacts the gold price. Gold is deeply woven into cultures around the world and their various customs create lumpy gold investment demand. It is clustered at specific times instead of spread out evenly across the year.

Naturally investors and speculators should exploit these seasonal tendencies. The best time seasonally to go long gold and other PM-related trades is right now. From August to February gold's biggest seasonal rally of the year erupts. During this timespan, which includes gold's four best calendar months, the lion's share of its entire bull-market gains have been made. I fully expect the rest of 2008 to unfold according to this precedent.

Adam Hamilton, CPA
Zeal LLC.com