Silver: Expect Major Rally By End Of February: Here’s Why

109
0
Share:

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.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com Canada

Subscribe to Equity Extra

Recieve the Latest Updates on Breakout Stocks

Subscribe to Equity News Report’s ‘Equity Extra’ Alerts list to be the first to learn about Premium Nasdaq Stocks before they Breakout

Share:

Leave a reply