opinion

Gold and silver price at all time highs: What’s really driving the move?

Kitco Media
By CPM Group
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Gold and silver price at all time highs: What’s really driving the move? teaser image

In this presentation, Jeffrey Christian discusses why gold, silver, platinum, and palladium are trading at or near record levels. He also explains the importance of understanding different timeframes and the difference between daily prices and monthly, quarterly and annual average prices when using projections of future prices of precious metals. Jeff explains how CPM Group looks at ultra-short-term moves, monthly averages, and long-term annual averages, and why saying “silver can’t stay above $50 on a long-term sustained basis” can still be consistent with saying that CPM expects prices will rise in the long run from 2025’s annual $40 silver price.

He also discusses some other happenings in Precious Metals markets, including gold and silver ETF demand, what open interest in the active Comex contracts does (and does not) imply for price risk, misconceptions around Comex vs Shanghai pricing, VAT and market structure differences, and why India’s physical market dynamics can ripple through London and New York.

The presentation concludes with a discussion about the JP Morgan fine by clarifying the difference between spoofing, manipulation, and failures of supervision and compliance, and the long-term effect of spoofing on a market.

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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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.