Jeffrey Christian: Price Potential for Gold and Silver in 2021

TL;DR

CPM Group is bullish on silver due to flat supply, increased use in solar panels and electronics, and rising investment demand. Gold prices are currently high but may plateau in 2021-2022, with potential for record levels in the future.

Transcript

welcome to innn's coverage of pdac which runs online this year from march 8th to 11th you're about to watch my interview with jeffrey christian of cpm group it was filmed on february 19th and the topics covered include the outlook for gold and silver this year you'll be able to find all the rest of our pdac coverage right here on our youtube channe... Read More

Key Insights

• ℹ️ CPM Group emphasizes the importance of distinguishing reliable sources of information in the precious metals market, as misinformation and poorly analyzed data are prevalent.
• 🧘 The reduction in liquidity in the wholesale gold and silver markets due to bullion banks exiting or reducing positions has caused increased volatility.
• 💵 Central banks' reduced gold purchases in 2020 and the utilization of gold as a quasi-money by the Turkish central bank highlight distinct factors impacting the market.
• 🥹 While platinum has seen a surge in demand, palladium investors have largely held onto their positions rather than shorting them, indicating a positive outlook for both metals.

Questions & Answers

Q: Why is CPM Group bullish on silver right now?

CPM Group has been bullish on silver for years, primarily due to flat supply, increased use in solar panels and electronics, and rising investment demand. These factors suggest potential for price increases in the long term.

Q: What is the short-term outlook for silver prices?

In the short term, technical chart patterns indicate a breakout above the $28 level for silver, potentially leading to another spike in prices. Increased investment demand, especially from new entrants, is expected to keep prices strong in the next month or so.

Q: What caused the recent interest in silver connected to Wall Street Bets and GameStop?

The recent interest in silver was driven by the Wall Street Bets community, who misunderstood the silver market and believed there were massive short positions. However, the silver futures market's short positions are hedges for long positions in the physical market, not naked shorts.

Q: What is CPM Group's price prediction for silver by the end of 2021?

CPM Group expects incremental increases in silver prices, with a potential spike above the $28 level. However, as a long-term investment, prices may take several years before significant returns are seen. Claims of silver reaching $100 are considered nonsense based on supply and demand factors.

Summary & Key Takeaways

• CPM Group has been bullish on silver for several years, citing flat supply, increased use in various industries, and rising investment demand as drivers for potential price increases.

• Short-term technical chart patterns indicate a breakout above the $28 level for silver, potentially leading to another spike in prices.

• Gold prices reached all-time highs in 2020 but have since calmed down. CPM Group expects prices to plateau in 2021-2022, with potential for record levels in the future due to unresolved economic and political issues.