Mike Maroney Interviews CPM Group’s Jeff Christian on September 2018

Mike Maroney: Good afternoon! My name is Mike Maroney and I am talking today with Jeffrey Christian, the Managing Director of the CPM Group.

Now, interesting, because a lot of people have been using the dollar as a safe haven, the precious metals are in a… looks to be a very strong buy zone, now, longer-term Jeff, what’s your view on the dollar? Does this look like the dollar is potentially putting in a top and over the next year or two we may look back on these prices as a tremendous buying opportunity for precious metals?

Jeffrey Christian: I think the dollar is putting in a top. I’m not sure how far the dollar falls once it’s put in that top, because for the dollar to be particularly weak, the Euro, and the Yen, and the Pound Sterling has to be strong and those countries are all in worse shape than the U.S. is economically. So, I think, that the dollar may stop rising, but I’m not so sure that it’s going to fall. That’s partially important to the gold price, because if the dollar stops rising, people will buy fewer dollars and they’ll start looking to gold as an undervalued safe haven asset. I’m not necessarily sure that you’re going to see the dollar falling sharply adding impetus to the upside for both.

Mike Maroney: Now, obviously, in silver, because of its industrial nature, we’ve seen tremendous demand whenever the prices get low. What are you seeing on the physical end and do you feel that right now silver may be one of the better buys on the board?

Jeffrey Christian: What we’re seeing, physical demand is plugging along on the industrial side. Solar is holding up much better than a lot of people had thought, which is not surprising. Electronics is rolling forward in a healthy pace. You’re seeing some increase in jewelry demand, partly because of the lower prices. And then on the investment side, you know, we had seen extremely weak physical demand for gold and silver, but that’s turned around now and the last couple of months we’ve started to see pretty healthy pickup once more in silver coin sales and also some other silver physical products.

Mike Maroney: So, the bottom line once again is… in order to make money, you need to buy low and sell high. Right now, the precious metals are low in comparison to where they’ve been and look to be potentially headed higher. Jeff, it’s been great talking with you today and we’ll talk again next month.

Jeffrey Christian: Ok. I’ll see you then.

Mike Maroney: Alright, you take care now. Thank you.