The summer months are often a quiet time for the resource sector, with many market participants taking the old adage "sell in May and go away" to heart. As a result, investors tend to look forward to September, when prices and market activity typically pick up. Unfortunately, this year that pattern simply hasn't held true for silver — in fact, quite the opposite has happened. A quick glance at a the metal's activity from May until now (see below) shows that it ended May at $18.81 per ounce, then proceeded to move upward throughout the summer, hitting a high point of $21.44 midway through July. Since then, silver has been on a steady decline, today sinking as low as $18.88 — essentially right back where it was three months ago.
Silver's unseasonal price rise isn't surprising given that the summer brought tension regarding conflict between Ukraine and Russia and in Iraq — after all, as a safe-haven asset, silver is a magnet for investors when geopolitical uncertainty hits. The current downward movement is also unsurprising given that the US dollar is currently on a tear. That said, silver's unusual behavior certainly has investors wondering what's next for the white metal. While longer-term predictions are scarce, Kitco's Jim Wyckoff suggested Wednesday that silver bulls' next upside price breakout objective is "closing prices above solid technical resistance at $19.50 an ounce." Meanwhile, Julian Phillips states in a post for GoldSeek that the white metal is "waiting for gold to give direction." Silver closed today at $18.95. Junior company news El Tigre Silver (TSXV:ELS,OTCQX:EGRTF) on Tuesday announced "strong" assay results from the year-round exploration program at its Mexico-based El Tigre silver and gold project. Assay results from four samples of underground backfill material from the Southern vein area ranged from 1.28 grams per tonne (g/t) gold to 4.32 g/t gold and 262 g/t silver to 468 g/t silver.