opinion

The silver surge is REAL: The RISK no one is talking about

Kitco Media
By CPM Group
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In this presentation, Jeffrey Christian of CPM Group explains what is really driving the latest surge in silver prices, and why so many popular explanations circulating online don’t hold up when you look at how the market actually works.

Jeff starts with a market update of where gold, silver, platinum, and palladium are trading, then focuses on the silver market, including why large moves often come with sharp pullbacks as short-term investors take profits. He explains how today’s market is being influenced by momentum traders, and why those same buyers can quickly become sellers once prices spike.

He also addresses several misconceptions, including the “paper vs. physical” narrative, claims of backwardation based on mismatched price references, and the confusion created by comparing different products and markets. Jeff also looks at what higher prices tend to mean in real world conditions: more scrap coming to market, more supply development, and more substitution by manufacturers. 

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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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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.