Why gold prices are expected to recover after a very bad week
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
CPM Group's Jeffrey Christian looks at the gold price over the past week, discussing why the precious metal's price fell, and what might happen next.
Jeff also looks at how gold has performed over the past 5 years, and CPM Group's projections over for next three months.
Why CPM Group?
Our track record projecting prices over the past four decades has been very good, and is based on our supply and demand statistics and analysis. The fact that the price results have been good suggests the statistics on which the price projections are based reflect reality in the markets.
Better Independent Analysis Other sources of "research" depend on two things that fatally flaw their work.
They add some forwards to their spot physical supply and demand data, when in fact forwards do not use physical metal in any way.
This was first done in the early 1990s to justify the large jewelry promotion when mining companies were beginning to slash their budgets and staff. The argument, was that it was not a lack of jewelry demand pushing prices down, but the producers' own hedging. It is not true. Further, only estimates of forwards by mining companies were included, ignoring the larger volumes of forwards used by manufacturers, refiners, and others.
They add coins to fabrication demand, to make the supply/demand balances in silver and gold appear tighter and more bullish.