(Kitco Commentary) - In this presentation, Jeffrey Christian of CPM Group discusses gold’s decline below $4,000, silver’s break below $50, and whether precious metals prices are approaching a turning point. The presentation looks at election risks, investor behavior, potential support levels, gold tokenization, and the implications of higher interest rates.
At the time of recording, December COMEX gold futures were trading around $3,956 after falling to approximately $3,904. Jeff explains why CPM considers a move toward $3,800 possible, although uncertain, and why further weakness would not necessarily signal the end of the gold bull market. Many investors are waiting for prices to stabilize and begin rising before buying again, leaving the market vulnerable to additional declines in the meantime.
Silver had fallen to approximately $48.62 before recovering to around $50.00. Jeff discusses potential support around $48 area and explains why CPM continues to see longer-term support from investment demand. He argues that economic uncertainty, financial risks, fiscal deficits and political tensions are likely to remain important regardless of the election outcome.
Jeff also puts the recent selloff into perspective by comparing prices with earlier years rather than focusing only on the distance from January’s peaks. He discusses why prices well above average mining costs encourage additional investment in gold and silver production.
Turning to gold tokenization, Jeff questions whether digital tokens will attract the substantial new investment some promoters anticipate. He explains why direct ownership and physical possession matter to many bullion investors, and why tokenization can introduce third-party, custody and operational risks.
The presentation closes with a discussion of longer-term interest rates, Treasury yields and debt.
