Silver’s seasonal sweet spot has arrived

By Don Vialoux
The Globe and Mail

The “sweet spot” for seasonal strength in silver has just started. How does the seasonal trade line up this year?

Equityclock.com notes that the precious metal often sees gains from the end of December to the end of February. The trade has been profitable in 12 of the past 17 periods, including 9 of the past 11 periods. Average return per period during the past 17 periods was 12.0 per cent.

Seasonality in silver is influenced by an increase in industrial demand during its period of seasonal strength. Approximately 40 per cent of silver is used industrially – in solar batteries, water purification systems, cellphones, circuit boards, plasma televisions and radio frequency identification devices (RFIDs).

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