opinion

Why silver isn’t running out (despite what you hear)

Kitco Media
By CPM Group
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In this presentation, Jeffrey Christian of CPM Group addresses several widely discussed topics in the silver market, focusing on misconceptions about supply, inventories, and the idea of a persistent global silver shortage. Jeff explains what the claims of large and growing deficits are based on, and the fault in that calculation.

The discussion examines how higher silver prices affect market behavior, leading to increased mine production, greater secondary recovery from scrap and investment products, and reduced fabrication demand. These adjustments help explain why the silver market has remained in surplus in recent years, despite claims to the contrary.

The presentation also touches on Comex inventories and explains why movements between registered and eligible stocks are often misunderstood and have limited relevance for long-term price analysis.

Finally, the discussion turns to broader investment considerations, including the role of gold and silver in a diversified portfolio and how investors can think about allocating to precious metals over the long term.

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.