Does the Silver price experience seasonality?
Seasonality, the tendency for prices to consistently move in the same direction at particular times in the calendar year, is always fascinating. While it is intuitive for commodities dominated by orbital-mechanics-driven annual patterns, such as natural-gas demand surging in the cold winters, seasonality also exists in commodities without clear calendar connections. Over the years I’ve done a lot of work on gold seasonality. Though this metal is mined year round regardless of the seasons, it still exhibits strong seasonality. This is driven by large fluctuations in investment demand tied to the calendar, including festival seasons in Asia, Christmas season in the West, and financial-year-end cash-surplus buying. The calendar year really matters for gold. Each time I penned a new essay on gold seasonality, I received many e-mails wondering “what about silver?” I’ve been curious too, but my technical research showing silver following gold is crystal clear. Gold’s action drives psychology
