Four weeks ago, in the issue of Seasonal Insights, I brought you an analysis on the seasonality of gold.
Today I want to take a closer look at another popular precious metal: silver.
Silver, often referred to as gold’s “little brother”, has an interesting seasonal pattern now. I would like to show you this!
The seasonality of silver under the magnifying glass
Take a look at this seasonal chart of silver. in contrast to the usual charts, the seasonal chart shows the average trend of silver depending on the season. For this purpose, mean values are formed from the price returns of a total of 10 years. On the horizontal axis, the time in the year is entered; on the vertical axis, the chart shows the price information.
Silver in US dollars, seasonal trend, determined over 10 years
You can see two positive phases in silver.
The first starts in mid-December (so on the right side of the chart) and lasts until February (because of the year change this is on the left side of the chart).
The second, stronger phase, begins at the end of June and lasts until the beginning of September. I have marked this second phase with an arrow, with the circle marking the beginning.
Even in difficult times you can make profits!
The past few months have been difficult for many investors in standard stocks.
However, there are not only standard shares to consider.
Even in seemingly difficult market phases, there are good investment opportunities.
So just take a look at the instruments that have different seasonal patterns than standard stocks – like silver, for example.
With such instruments you can not only diversify, but also make profits in difficult times.
In addition to commodities or currencies, there are also many equity sectors that perform positively in difficult times.
Seasonax’s screener, which also includes sectors and many other indices, will be happy to help you with your search.
Why don’t you take a look and try it out!
Warm regards,
Dimitri Speck
Founder and Chief Analyst of Seasonax
PS: There are many instruments and many seasonal progressions. Take advantage of the variety of opportunities for investing!