Jeff Christian, Managing Partner at the CPM Group joins us to focus on the recent volatility in silver.
The discussion covers a broad spectrum of factors influencing silver prices, including technical momentum, investor demand, and industrial applications. Jeff explains the erratic price movements observed in 2023, noting that silver prices have fluctuated significantly due to economic uncertainty and investor sentiment.
We then look to at the Commitment of Traders (CoT) reports, highlighting the dynamics between commercial and non-commercial entities. Jeff touches upon the concept of market congestion and clarifies the difference between a short squeeze and price congestion. He emphasizes that while technical charts, industrial demand, and investment interest collectively drive silver prices, the fundamental economics of silver supply and demand act as overall limiting factors.
Finally, Jeff speculates on short-term price movements driven by open interest in futures contracts and concludes with cautionary advice for investors based on the historical behavior of the silver market.
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