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Why gold and silver prices jumped: The truth about comex deliveries

Kitco Media
By CPM Group
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 In this presentation Jeffrey Christian of CPM Group reviews the market’s reaction to Fed Chairman Jerome Powell’s Jackson Hole speech and what it means for gold, silver, platinum, and palladium prices. While gold and silver are still rangebound, Jeff explains why these moves may mark the start of the renewed longer upward trend for gold and silver CPM has been projecting to start in the final four months of this year.

The video also takes a deeper look at gold market mechanics, particularly countering nonsensical claims that millions of ounces are being “drained” from Comex depositories. Jeff explains how futures deliveries actually work and why ownership transfers do not equal physical shortages. He shows data from recent delivery activity to illustrate that these claims are erroneous. August gold deliveries are in line with normal market functions.

The discussion closes with broader commentary on U.S. economic pressures, labor force disruptions, and the importance of separating facts from myths when making investment decisions in gold and silver.

Kitco Media

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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goldsilverJeffrey Christian
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.