July 7, 2013 -- History shows that in years where bear market dominates gold, the second six months of the year offer hope, Bloomberg reported.

From 1981 until 2000, gold averaged 1.3 percent in the second half of the year, according to data compiled by Bloomberg. During that same period, losses during the first half of the year averaged 3.9 percent.

Based on the gradual decrease of the gold price in early 2013, followed by dramatic losses in April and June, the precious metal may see its first annual drop in price in 13 years.

“The rout already strengthened demand for jewelry and coins around the world and the second half of the year usually sees gains in physical demand for wedding seasons and religious festivals in Asia, including India and China, the biggest buyers,” wrote Bloomberg’s Nicholas Larkin.

“The physical trend has always been very seasonal,” said Bernard Sin, who heads currency and metal trading at MKS SA, a bullion refiner in Geneva, Switzerland. “Physical players are a different breed. They are always buying on the dip. Physical support will continue to be present and it will definitely trigger interest.”

During 2001, the first year of the recent bull market run, gold averaged an increase of 11 in the second six months of the year. That is more than double the average first-half increase of the same year.

In fact, demand was stronger on the second half of the year in 75 percent of the last 12 years of gold trading, according to data from Thomson Reuters GFMS.

Currently, Turkish demand of physical gold is high, according to Bloomberg’s Larkin.

“Imports into Turkey, the fourth-biggest consumer, more than doubled to a 4 1/2-year high of 45.5 tons in April,” Larkin wrote. “They held above 43 tons in May and June, the longest run in data on the Istanbul Gold Exchange’s website going back to 1995. Jewelry accounted for about 60 percent of the country’s consumer demand for gold last year, according to the World Gold Council.

Bullion for immediate delivery in China, the second-biggest user, averaged about $37 more than the London price since mid-June, Shanghai Gold Exchange data show. It was about $21 this year before then. The increase signals strengthening demand.”