In simple terms, seasonality refers to times when prices of a particular commodity like natural gas or grains are strongest relative to other times of the year. This may be due to excess consumption or reduced supply. For example, during extremely hot summers, people use more air conditioning and that drives demand for electricity and that in turn drives up the demand for fuel like natural gas. Another is example is, during hurricane season in the US, natural gas facilities have to be shut down thus squeezing supplies and jacking up prices.
As you can see seasonality is nothing more than common sense that can both be applied to fundamental and technical analysis. Fundamental because strong commodities prices will boost earnings of the underlying companies and technical because it occurs annually in a pattern.
After investing for three years without any regards for seasonal strength, I've decided to test the theory out and invest in Silver during its seasonal strength of September 16th to April 11th. With gold prices climbing to $1800 +, its sister metal, silver should follow closely behind. Plus, according to the Globe and Mail, silver has been profitable in the last 11 out of 14 years with average returns of 31.5%. Pretty good odds if I do say so myself. My choice of investment are big to medium silver sized firms like Silver Wheaton, First Majestic Silver, and the more speculative Silvercorp (who has been accused of fraud but isn't proven guilty....yet). If you're feeling particularly ballsy, try the horizon beta pro silver bull ETF (x2).
-The Hawk
More info on seasonality:
http://www.equityclock.com/seasonality/
Globe and Mail article on seasonality of silver:
http://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/don-vialoux/silvers-season-of-strength-approaches/article2154664/
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