Seasoned investors are no doubt aware of the market adage “sell in May and go away.” The idea behind it is that investors who sell their stocks at the beginning of the summer, re-entering the market in the fall, are able to avoid seasonal weakness.
Market watchers do seem to agree that June is silver’s weakest month. Indeed, if UBS analysts are to be believed, prices for the white metal may even be weaker than usual this June. Interestingly, it seems the World Cup is to blame.
The thinking is that focus on the football matches and the overall excitement surrounding these games could act as an added incentive for market participants (and football enthusiasts, more generally) to go for holidays around this time.
So what does that mean for investors? According to Maund, silver’s June weakness is a buying opportunity. Investors will have to decide whether — amidst all the World Cup excitement — they have time to take advantage of it.
See full story on silverinvestingnews.com
Photo courtesy of silverinvestingnews.com