Silver Facts and Fantasies: Part 2

In this presentation, Jeffrey Christian of CPM Group discusses the gold-silver ratio, one of the most widely referenced indicators in the precious metals markets. Many investors believe that the ratio between gold and silver prices should reflect either minable deposits or above ground inventories. Jeff explains why that assumption is incorrect, what actually determines the gold-silver ratio, and whether it is important.+

The presentation then addresses misunderstandings about global silver inventories. Jeff reviews CPM Group’s long-term estimates of above-ground silver stocks and explains why reported exchange inventories represent only a small portion of the total amount of silver available in the market. He discusses the roles of bullion, coins, exchange inventories, and unreported holdings in shaping the overall supply picture.

Finally, the segment concludes with a look at some of the broader factors influencing silver prices, including economic conditions, political uncertainty, inflation, and seasonal investment demand.

Courtesy of the CPM Group