Summary

In this call, Jeffrey Christian, Founder of CPM Group elaborated on his proposition that the gold and silver bull market is not over. Within the call, Mr Christian explored in detail his forecasts for both gold and silver commodity markets, in addition to other metals including manganese, platinum, palladium and rhodium

On gold, Jeffrey explained that he expects the price of gold to reach a new record price of around $2,500 per ounce within the next three to five years, and thereafter declining towards the end of the current decade. Whereas, through the next 12 months, Jeffrey expects the price of gold to move sideways, perhaps increasing slightly. Jeffrey’s longer term forecast arises from his expectation of a global recession during this period, bringing with it increased financial market instability, alongside political instability arising from, for example, US-China bilateral relations. In such an environment, Jeffrey suggests, Investors will be enthusiastic to add more gold and silver to their portfolios. On the other hand, Mr Christian explained how investors are less likely to buy and sell gold when bearish. He further described how investors buy gold for six reasons: as a safe haven, as a currency or inflation hedge, as a form of savings, as a portfolio diversifier, as an alternative asset, or as a commodity. Additionally, Jeffrey suggested that inflation has not been a major driver of investment demand and gold prices for the past twenty to thirty years, and so, he is not too concerned by inflation. Instead, he described a greater concern with deflation. On silver, Jeffrey suggested that its price could well exceed $40 an ounce during the next peak within the next few years. He suggested that the price of silver is driven largely by investment demand.

Following on, Jeffrey explored trends among other metal commodities, including platinum group metals. He noted how such metals have gained attention in recent times due to the growth in electric vehicles. On the other hand, Mr Christian explained how the International Energy Agency predicts that - despite growing interest in renewable fuels and technologies - by 2040, natural gas and oil will remain the two primary global sources of energy. Consequently, he argued that metals such as platinum, palladium, and rhodium will continue to be in high demand for their use in the cleansing of exhaust emissions. Finally, Jeffrey explored the growing use of manganese in the manufacture of lithium-ion batteries resulting from supply shortages of cobalt.

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