Silver was down 16% in Q3 as the Fed begins to taper asset purchases. Another factor is that inflation looks likely to ease in the coming months as supply chain issues are sorted out. However, Taylor Dart explains why Q4 could be quite strong for silver.
Precious metals bulls hoping for a stronger second half of the year have not been rewarded yet, with silver (SLV) sliding more than 16% in Q3, falling deeper into negative territory year-to-date. This horrid Q3 performance followed a sharp reversal and 6% drop in June, and it’s now up to the bulls to play strong defense as we Q4. The good news for investors is that silver seasonality is very strong in Q4, often finding a low in late Q3 or early Q4 and rallying into year-end. The other good news is that silver is the most hated it’s been in years, and when the scales are tipped too far in one direction for pessimism, we typically see snapback rallies. Let’s take a closer look below: