opinion

Gold and silver ALERT: Is $3,800 the next test?

Kitco Media
By CPM Group
Published:
Updated:
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Gold and silver ALERT: Is $3,800 the next test? teaser image

(Kitco Commentary) - In this presentation, Jeffrey Christian of CPM Group discusses the price swings in gold and silver over the past few days. Gold was near $3,880 at the time of recording after trading as low as $3,871. Silver was near $49 after swinging between roughly $48.56 and $50.73. Jeff discusses why some market participants are watching $3,800 gold and the $48 area in silver. He also reviews the wide trading ranges in platinum and palladium.

Jeff connects the broad selloff to concerns about higher interest rates, persistent inflation, and weaker economic activity. He explains why investors are favoring U.S. Treasuries and the dollar in the near term, and why CPM still expects those economic concerns to support gold and silver investment demand over time.

The presentation also discusses what the bid-to-cover ratio tells investors about the appetite for U.S. government debt. Jeff puts the rise in 10-year Treasury yields in historical context and explains why longer-term borrowing costs matter to households and businesses.

The video includes a discussion about precious metals leasing. Jeff explains why a miner might hold bullion in its treasury and lease metal it would otherwise sell. He discusses how leasing can help fabricators manage price risk and free up working capital.

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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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goldsilverJeffrey ChristianU.S. government debtBondprecious metalsU.S. Treasuries
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.