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Silver is neither critical nor strategic - CPM Group's Jeffrey Christian

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(Kitco News) - Silver is not in deficit despite solar panel demand ramping up, said Jeffrey Christian, managing partner at CPM Group.

In March Christian spoke to correspondent Paul Harris at PDAC 2023.

Christian noted that the market is currently well supplied. Total supply from mine production plus secondary recovery less fabrication demand determines if the market is in supply or deficit.

"If you measure the silver market that way, it's not in deficit. There's a surplus, and that surplus is taken up by inventory holders many of whom are investors," said Christian.

"Now there are people who try to promote silver to investors, and they say: we'll throw investment
demand in with fabrication demand and then we can say there's a deficit...that's just the wrong."

Christian also said investors need to be mindful of definitions.

"Silver is neither a strategic metal nor a critical metal," said Christian. "Now there's several silver producers who keep saying 'What can we do to elevate the importance of silver to investors.'"

The definition of a strategic metal is one that is at-risk and it is very important for industry or the
military, noted Christian. But silver is not that scarce.

"Silver doesn't fit that category."

Coverage of PDAC 2023 sponsored by Uranium Energy and GoldMining.

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