Gold 0.21%
£3,279.74 OZ
Silver -2.37%
£48.98 OZ
Platinum -0.49%
£1,351.17 OZ
The Silver Britannia is capital gains tax free in the UK, making is a very popular choice with UK investors
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The behavior of precious metal prices during December offers an intriguing glimpse into seasonal market trends. By examining historical percentage changes for gold, silver, and platinum from 2000 to 2023, we can assess whether there is a consistent trend in the performance of these metals during the final month of the year. The analysis considers various economic and market factors influencing their prices and identifies patterns across the dataset.
Gold, often regarded as a safe-haven asset, exhibits a relatively stable performance in December. Gold’s sharpest December increase occurred in 2008 during the global financial crisis(+14.12%). While there were years of decline, such as in 2011 and 2013, these were relatively moderate compared to gains during bullish years. This indicates that December is generally a stable month for gold, with no pronounced seasonal weakness
The steep increase in 2008 aligns with the financial crisis, where demand for safe-haven assets spiked. Conversely, sharp declines like -15.42% in 2011 highlight its susceptibility to market corrections. For investors willing to embrace higher risk, silver offers opportunities for substantial returns in December. However, the unpredictable nature of its performance makes it a less reliable asset for those seeking consistency.
Platinum, known for its industrial applications and rarity has the most consistent performance among the three metals. December changes range from -10.5% (2011) to 16.07% (2008), with most years showing relatively modest fluctuations. While platinum has experienced declines, its average December performance leans toward modest gains. The absence of extreme volatility in platinum prices suggests that it is less influenced by speculative trading than silver.
Data analysis to determine if there is any pattern fro Gold prices in December and if this relates to the overall annual Gold price performance of the same year has highlighted the following:
In some years, December returns align closely with annual returns with 2006 and 2020 being postive for the year and December, 2009 bucked this trend as December’s -8.49% return sharply diverged from the annual return of 24.49%, indicating a December correction following a strong overall year
When annual returns are strongly positive, December often follows suit with positive returns. This pattern holds in years like 2006, 2020, and 2019, where bullish trends persisted through December
The data reveals no simple “one-size-fits-all” relationship between December gold returns and annual returns. While momentum continuation is common in bullish years, December can also act as a corrective period or outlier,
While not part of the above-ground stock, proven reserves of 59,000 tonnes highlight the potential for future mining activity. These untapped resources represent opportunities for sustained production and market growth.
Investing in British Gold
The Gold Britannia coins are the Royal Mint’s flagship fine Gold coin and is available at low-premiums, buyback guarantee and no Capital Gains Tax to pay when selling
