opinion

Gold and silver recover: Where prices move from here

Kitco Media
By CPM Group
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In this presentation, Jeffrey Christian of CPM Group discusses what comes next for gold, silver, platinum, and palladium following last week’s sharp selloff, and explains why the pullback was not surprising after the rapid, surge in prices.

Jeff begins by looking at the U.S. dollar, showing why claims of a “collapsing dollar” do not hold up.

He emphasizes the importance of time horizons in market analysis, explaining how prices can be unsustainably high or low in the long run while remaining volatile for months or even years in the short run.

Jeff then looks at the role of COMEX contract rolls and positioning, including how large open interest can affect price moves without implying any shortage of metal.

He also reviews ETF activity across gold, silver, platinum, and palladium, explaining how gold ETF investors were net buyers through January, while silver ETF investors were net sellers, even as prices spiked.

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 ChristianU.S. dollarComexETF
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.