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Spoofing's real impact on silver price: JPMorgan case explained - Jeff Christian

Kitco News

When it comes to spoofing, the main difference between a legitimate trade and illegal activity is the intent behind the trade, said Jeff Christian, managing partner of CPM Group.

“In financial regulatory issues, it’s all dependent on motives, because if you look at what spoofing is, somebody puts in a ladder of buy orders or sell orders, with the intent of driving the price up or down…in reality, a lot of people who are legitimate market participants, buyers or sellers, will put in a ladder of buy or sell orders, hoping to get a better price for their product or a lower price for their raw materials,” Christian told David Lin, anchor for Kitco News.

The long-term trends of the silver price are still based primarily on economic fundamentals, and not the fleeting impacts that spoofing may have, Christian said.

“On the monetary side, there are a lot of people expecting very high inflation. We’re not necessarily in that camp. We still think there are a lot of offsetting deflationary pressures in the real economy: manufacturing, labor, commercial real estate, retail capacity,” he said.

On his price forecast for silver, Christian is bullish on the metal long-term.

“We are looking at the price, basically moving sideways for the next couple of quarters: $22 on the low side, $28 on the high side. Spikes up to $30 or $32 are possible, especially for the next two weeks as we move towards the May delivery periods,” he said. “Longer-term, beyond the third quarter, we expect the silver price to rise and by 2023, 2024, we think it could rise substantially, based on strong investment demand.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.