Autumn the Season to Invest in Mining Equities

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Canadian investment dealer Raymond James says autumn in the northern hemisphere is historically the best season to invest in mining equities, with both long-term cyclical and short-term seasonal effects of metal supply and demand currently supporting investment.

Autumn in the northern hemisphere is historically the best season to invest in mining equities, with both long-term cyclical and short-term seasonal effects of metal supply and demand currently supporting investment, says Canadian investment dealer Raymond James.

Although the market recently showed some volatility, each pullback in market values presents good buying opportunities, said the company in a recent base metals and commodities report.

Further upside in mining equities is expected to the end of the year as both base metal valuations and seasonal trends support further upside in these mining stocks.

Base metals and mining analyst Tom Meyer said well-supported commodity prices and the prospect of merger and acquisition activity in the small and mid-cap base metal space should not only underpin present valuations but also provide opportunity for relative outperformance.

A 16-year history of monthly metal and equity price performance shows that in a bull phase, the autumn to late-Autumn months are good for copper, base metals and diversified equities...

Raymond James said the world was currently only in year five of ten to fifteen year commodities boom and "better returns" were still ahead...

The Philadelphia Gold and Silver Index, known as the XAU, has typically achieved its best performance in August and then November, while May has also been a good month...

Gold performs its best in November during this phase and silver excels during March, July and November months.

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