Silver will make a move in price in excess of its total annual seasonal gain over the coming two months.
The chart below shows the average moves in silver prices in the course of a calendar year over the past 69 years.
As the chart illustrates, on average silver tends to post its strongest price gains early in the year until peaking close to the end of February. This rapid advance begins in mid-December (blue arrow). Thereafter, the price typically retreats again.
The strong seasonal advance is very likely driven by purchases from the manufacturing industry. Many industrial silver processors/users place the bulk of their purchase orders at the beginning of the new financial year once annual planning has been completed and new orders can be booked.
If you purchase silver ahead of this phase – to be precise, in mid-December – you will buy at a fairly reasonable price from a seasonal perspective and stand to benefit from the strong seasonal rally.
The above excerpts from the original article by Dimitri Speck have been edited for the sake of clarity and brevity. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.