Video News/In Focus with Jeremy Szafron

(Kitco News) - Much of the gold and silver being sold back into the current rally is coming from investors who are late, while the metal piling up at dealers and refiners is creating an opening for long-term buyers, according to Jeffrey Christian, managing partner of CPM Group. Speaking with Kitco News, Christian said that of the investors who have owned gold since 2019, a significant number were willing to sell once the price reached $5,500, taking roughly $1,000 off the price in about three trading days. He argued that ETF buyers are "on time" while "the coin sellers are late," and explained that dealers and refiners cannot afford to hold the smaller bars and medallions coming back over the counter, because their banks will not extend larger credit lines as prices rise. That dynamic, he said, pushes metal into the refining pipeline and exerts downward pressure on the price, which "gives longer-term investors who have the finance the opportunity to buy at lower prices." Christian also said his firm does not see a silver deficit, describing the market as running relatively tight surpluses rather than a genuine shortage.