Post-Election Precious Metals Expectation

Sean Brazney: Hello, my name is Sean Brazney, Sales Director for Monex Deposit Company. With a great pleasure of being here with Jeffrey Christian, Managing Member and Founder of CPM Group, and one of the authors of our Precious Metals—2024 Precious Metals in a Rising Storm. Thank you for being with us today Jeffrey.

Jeffrey Christian: Always a pleasure, Sean.

Sean Brazney: I was thinking about our topic today and coming through the end of October and into the election, of course, seeing some volatility in the market. We had a high spike in gold, just over $2,800 an ounce. Silver got over $35 an ounce. Since the election, we’ve sold off about $250 an ounce in gold, and about $5 down in silver. It’s brought on some volatility and a couple of questions that I’m getting from investors. I’m looking forward to your data today. By the way, this is our last report for Precious Metals in a Rising Storm. Again, spot on the end of the year. I usually like to give you a little bit of a victory lap, because how spot on you are all throughout the year with these reports and the information. Of course, you’ve come out with this latest report after investors are asking me for something post-election. Sure enough, in this report, you start talking about leading into the election and after the election and some things to expect. Again, I’m excited about having this resource for our viewers and our listeners, but I have a couple of questions for you.

One is coming away from that technical high and the sell-off, it was a much-needed healthy correction, I think, gave some opportunities for people looking to buy or accumulate another opportunity to buy lower, but also after the election, there’s a lot of questions as to, is some of the worry out of the market? Is this going to be more of a prolonged downtrend? Based on your research and data, what do you see coming out over the next few months?

Jeffrey Christian: Well, I think in terms of the election, we’ve removed a big set of uncertainties from the market that’s been hanging over the market for months or years, but they’ve been replaced with new uncertainties. So, I think that the markets are still on very thin ice in terms of whether they feel they should be bullish or bearish. Frankly, I think it’s way too early to be able to say what exactly the implications for the economy, gold and silver… A) A second Trump administration, and B) A unified government, a unified Republican government where they control the presidency Senate and House of Representatives. I think it’s just too early, because they’re coming out with various things that they’re planning to do, and it’s not clear whether they’ll be contractionary or stimulative or further budget deficits, budget debt growth, and spending which could stimulate the economy and prolong the current economic expansion. It’s just too early.

Our view remains that we think that the gold price and the silver price will rise into the first quarter of next year. There are so many uncertainties, not just with what the next government in the United States is going to do, but what are the Russians going to do? What’s going to happen in terms of the Ukraine war? What’s going on in the Middle East? What’s going on with China? What’s going on between Russia and China? Because there are sharply increased tensions between those two countries with North Korea thrown in. So, there’s a lot of uncertainty, and we think in that environment, gold and silver investors will continue to buy into the first quarter and the prices will rise. We could see a little bit of a reduction of uncertainty in the second quarter, and that could lead to some softness in gold and silver prices, but we don’t see the prices falling sharply, and then we think as 2026 progresses, you’ll see even higher prices for gold and silver.

Sean Brazney: 2025? You said 2026. Is that 2025?

Jeffrey Christian: 2025.

Sean Brazney: Good to know. Again, you have five decades of commodity-based research and precious metals investment experience. This is in the hands of people that call us and get our report. Extremely valuable information. We’re very grateful to you, Jeffrey, and your team who put this report together for us. As always, we look forward to the time we get to spend with you and how helpful this time and this information is for our viewers and our listeners. So again, thank you for being with us today, Jeffrey.