Jeff Christian, Managing Partner at the CPM Group joins us to discuss the strength in the USD and stability of the gold and silver prices, as well as the concept of a silver stock-out.
We start by analyzing the persistent rise of the US dollar since October, noting its impact—or lack thereof—on the prices of gold and silver. Contrary to popular belief that gold and silver inversely correlate with the dollar, Jeff explains that their positive performance is driven by investor demand spurred by global economic and political uncertainties. The discussion also highlights significant buying patterns by central banks and institutional investors, with insights on how these actors influence gold prices and how their behavior might evolve through 2025.
Shifting focus to silver, Jeff discusses its growing allure among retail investors, especially those who find gold prices too prohibitive. He also explains the concept of a ‘silver deficit,’ distinguishing between investment and fabrication demand, and touches upon the increasing market interest in silver coins. Additionally, the discussion sheds light on the so-called ‘silver stock out’—a term recently coined to describe temporary supply tightness between the London and New York markets due to arbitrage opportunities.
Click here to visit the CPM Group website to learn more about the firm.