opinion

Silver price over $100: Supply response, scrap surge, and what comes next

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By CPM Group
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Silver price over $100: Supply response, scrap surge, and what comes next teaser image

In this presentation, Jeffrey Christian of CPM Group explains why gold above $5,000 and silver over $100 are not isolated events, but part of a broader move across metals. He discusses the real factors driving the surge, including political risks, macro uncertainty, and momentum-driven investments. He discusses the difference between long-term structural forces and short-term surges, including ETF activity and short-term investors entering and exiting the market.

Jeff also walks through the consequences of high silver prices including stronger incentives for mine supply growth, a surge in scrap recovery, refinery bottlenecks, and intensifying efforts by manufacturers to reduce per-unit silver use or substitute to other metals when possible. The discussion puts today’s volatility into historical context, clarifies why large price pullbacks can still occur inside a longer-term bull market.

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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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silverJeffrey ChristiangoldETF
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.