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Gold and silver ALERT: New buy signals, but risks remain

Kitco Media
By CPM Group
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Gold and silver ALERT: New buy signals, but risks remain teaser image

In this presentation, Jeffrey Christian of CPM Group discusses new short-term buy signals for gold and silver, the outlook following the Federal Reserve’s rate increase, and the central bank gold buying narrative.

For gold and silver, CPM also maintains its outlook for higher prices over the next four months as political and economic risks continue to support investment demand. That outlook does not rule out further declines along the way.

The presentation then examines why gold represents a growing share of central bank monetary reserves. Jeff explains how much of the increase reflects the rising value of gold already held, rather than a dramatic expansion in the quantity central banks own. He explains why private investment demand is central to that price increase and why reserve percentages alone can give a misleading impression of central bank buying.

Jeff also discusses the FOMC’s .25 point rate increase, persistent inflation, and signs of economic weakness as well as the reasons rising interest rates matter more to the gold price outlook than the rate decision alone.

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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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goldJeffrey ChristiansilverCentral bankFederal Reserve
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