Gold’s Little Brother
Today I want to put a popular precious metal under the magnifying glass for you: silver.
Silver, often referred to as the “little brother” of gold, has a particularly interesting seasonal pattern I would like to share with you.
Shiny large good delivery door stops made of silver – about to enter interesting seasonal phase. [PT]
Silver’s seasonality under the magnifying glass
Take a look at the seasonal chart of silver. In contrast to a standard price chart, the seasonal chart shows the average pattern of silver in the course of a calendar year. For this purpose, an average was calculated from the price patterns of the past 52 years. The horizontal axis shows the time of the year, the vertical axis depicts price information.
Silver price in USD per troy ounce, seasonal pattern over the past 52 years – Silver starts to rise at the end of June
As the chart illustrates, there are two favorable seasonal phases in silver. The first one begins in mid December (i.e., on the right hand side of the chart) and lasts until February (due to the turn of the year on the left hand side of the chart; arrow to the left).
The second one starts at the end of June and lasts until the end of September (arrow to the right).
In addition I have highlighted the beginning of this second phase with a circle.
The silver price rose in 31 of 52 cases!
The imminent strong seasonal period in silver begins on 28 June and ends on 21 September. A positive performance was recorded in 31 of the 52 cases under review.
During this phase silver generated an average gain of 4.87 percent, which corresponds to an annualized return of 22.71 percent.
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