Precious metals are off to a great start in 2023, and despite the strong labor market, the decline in ISM Services PMI showed that inflation is easing. The softer data triggered a flood of money back into Energies, Foreign Currencies, Precious Metals, and Stocks, while the U.S. Dollar and U.S. Treasury Yields declined. Seasonally Precious Metals continue their stride throughout January and peak in February. Here is a refresher chart of Silver if you missed our email alert to our futures and commodities clients. The diagram below shows the seasonal trend for Silver that has played out for 14 of the last 15 years. We have recently partnered with MRCI, which specializes in analyzing seasonal trends. Each month we provide approximately 30 monthly historical trading strategies for individual commodities, and commodity spreads from various major commodity markets - all at least 80% historically reliable with specific entry/exit dates. You can register for a free two-week trial of Seasonal Trends here: Get Seasonal Trends.
Silver Historical Seasonal Pattern
Looking at the other metals, Gold and Platinum continue to march to new contract highs while Copper is attempting another upside, "Breakout." Next Thursday will be the next "volatility" event with the release of CPI. If we get a reading below 7.0%, the chances for $4.00 Copper, $25 Silver, $1150 Platinum and $1900 Gold can become a reality. At those levels, we will begin trail stops to protect any profits as Metals begin to slide lower seasonally before making another bottom in June. If you have never traded futures or commodities or would like to learn more about taking delivery of Silver, I just completed a new educational guide that answers all your questions on transferring your current investing skills into trading "real assets," such as the 1000 oz Silver futures contract. You can request yours here: Trade Metals, Transition your Experience Book.
