Expect a seasonal rally in silver from Christmas until April
Seasonal patterns from over the past three decades would indicate that silver is set to enjoy strong gains from mid-December until the end of April next year.
Gold Core has published a superb chart by Dimitri Speck displaying seasonal trends in silver prices from the past thirty years, which clearly indicates a pronounced tendency towards sustained increases during the four and a half month period from the approach of Christmas until end of April.
Silver has enjoyed immense upside this year, outpacing gold's 9.3% year-to-date growth almost two-fold at 19%. Gold Core anticipates even further gains should the US Fed unveil further stimulus measures, as investors rush to precious metals as safe haven holdings.
A seasonality chart compiled by Bloomberg also highlights consistent trends throughout the course of the year, indicating that February is the best month to own silver with gains of 9.5% over the five year period and 6.4% over the ten year period.
Other favourable months for holding the precious metal are November, January, April and March – three of which fall within the traditional rally period outlined by Speck. June has proven itself to be the most inimical period for silver, displaying losses of 5.5% over the five year period and 5.3% over the ten year period.
Charts courtesy of Seasonal Charts and Bloomberg