opinion

How to accurately think about the silver market (many investors don’t)

Kitco Media
By CPM Group
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In this presentation, Jeffrey Christian of CPM Group discusses how investors should be analyzing the silver market in order to make informed decisions about the precious metal. He explains the four pillars that drive silver prices, including macroeconomic and political conditions, fundamental supply and demand dynamics, short-term market developments, and technical trading behavior.

Jeff also discusses why investment demand is the dominant force behind price movements, and how changing investor sentiment can quickly shift the market.

He also addresses widespread misconceptions about silver supply deficits, explaining why the market is currently in surplus when analyzed properly, and how flawed interpretations of investment demand can lead to misleading conclusions.

The discussion also covers trends in fabrication demand, including the role of solar panels and the impact of higher prices on industrial usage; growing importance of secondary recovery and the strong economic incentives for increased mine production at current price levels.

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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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Jeffrey Christiangoldsilver
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.