Gold and silver market update: Basel III, Comex and investor pitfalls

Kitco Media
By CPM Group
Published:
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Gold and silver market update: Basel III, Comex and investor pitfalls teaser image

In this presentation, Jeffrey Christian from CPM Group addresses several widespread misconceptions surrounding gold and silver markets.

Jeff explains how the COMEX futures market functions, discussing the differences between physical metal deliveries, paper contracts, and the importance of both in the market.

He also looks at Basel II regulations, and the reality that  gold is not about to be classified as a "high-quality liquid asset" related to bank liquidity requirements. He explains how none of this is meaningful for gold prices and banking gold behaviors.

Jeff also reviews common investor pitfalls, including how speculative misinformation, such as the 2021 silver squeeze, can lead investors into costly mistakes.

The presentation concludes with a market update for gold and silver, as well as CPM Group's updated short and medium-term projections for the precious metals. 

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CPM Group

CPM Group is a commodities research, consulting, financialadvisory and commodities management firm providing independent research,analysis and advisory services related to commodities markets, corporate andproject finance, and the financial management of exposure to commodity orientedinvestments.

We started our business in 1986 predicated on the idea that commoditiesresearch and advice is best delivered by independent experts who do not work forbanks, brokers, mining companies, or any other entity that has interests thatcould conflict with the best interests of the clients receiving the research,analysis, and advice.

All of our work is driven by fundamental commodities research and economicanalysis. As we undertake our research into individual commodities markets wegather a tremendous amount of information and develop an enormous body ofextremely high quality, unbiased analysis of the markets and the companies thatare involved with individual commodities. The outputs of our research andanalysis take the form of research reports, specialized and targeted consultingrelated to these markets, financial advisory services ranging from corporate andproject finance structuring to equity introductions, and managing specificcommodities and investment positions for clients.

CPM Group continues to demonstrate the economic value and financial worth ofsuperior research, information, and analysis. Our research is based onmicro-economic analysis of the individual components of each commodity market,wedded with a top-down macro-economic analysis of the global trends affectingthese markets. We apply the results of that analysis to our research,consulting, and advisory services.

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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.