Pattern & Cycle Recognition
Recognising seasonal trading patterns in precious metals helps our clients maximise their investment prospects, by simply looking for well-defined cycle-low opportunities. Whilst past performance is never indicative of future returns (as the old investment adage goes), with the benefit of hindsight and historical analysis, we can very convincingly identify seasonal patterns which have come to repeat themselves year in, year out, for very particular reasons.
Gold has been in a secular bull market since December 2015, but silver has technically been in a bear market from 2011 into late 2019, although some could argue that the flash crash in March 2020 was the end of the technical bear market. We would strongly suggest Silver is now in the early stages of its new multi-year secular bull market phase.
Platinum is very exciting indeed as hard material evidence is dramatically building that the bear market in platinum from 2008 to 2020 has undoubtedly ended, and we are now entering a new trend reversal in price within a very significant bull market; coinciding with the major super-cycle bull market in commodities.
By recognizing this December ‘Buy Zone’, it then allows us to take a closer look at the historical performance, when they were in a clear downtrend; to recognise if the seasonal pattern for investing at the end of each calendar year persists.
Sure enough, it can also be clearly identified last year, from the end of 2020 into 2021.