Predicted Price of Silver for March 2010
By Doug West, Ph.D.
For anyone that buys and sells silver on a regular basis it is very useful to have an idea of the approximate range of the price of silver for a given month. One way to get this information is by looking at several years of past price history and use this information to determine the price of silver for the current year (see Monthly Price Patterns for the Price of Silver). In this analysis, 26 years of price history for SPOT silver was reviewed to determine an approximate range for the price of silver in March 2010.
In 15 of the last 26 years, the average price of silver has been higher in March than the previous February. This indicates a slight bias toward increasing prices in March. To possibly increase the accuracy of the estimate, we consider only the 12 years where the price of silver on the first trading day of March ($16.50 in March 2010) was higher than the average price in the previous month ($15.87 in February 2010) in the analysis data set. The following projections were based on data from only those 12 years where the price for the first trading day of March was higher than the average price in February.
The results for March 2010: The expected high for the month should be between $17.64 and $18.30. The expected low for the month should be between $14.68 and $15.34. The average price for the month is expected to be approximately $16.49.
Like all predictions into the future, they should be taken with a bit of skepticism. The silver market can be very volatile and can change rapidly based on world events. In general, the price of silver is closely tied to the price of gold. Where gold goes, silver will likely follow.
Disclaimer: this article is intended solely for information purposes. The opinions are those of the author only. Please conduct additional research and consult your financial advisor before making any investment or trading decisions. No responsibility can be accepted for losses that my result of trading on the basis of this analysis.