What could the coming elections mean for precious metals?
Sean Brazney: Hello. My name is Sean Brazney, Sales Director for Monex Deposit Company. I am here today with Jeffrey Christian. He is a Managing Director and Founder of CPM Group, a Commodities Research Firm. Thank you very much for being with us today, Jeffrey.
Jeffrey Christian: Hi Sean, it’s always good to be with you.
Sean Brazney: You’re the author of our New Decade for Precious Metals Investing, which is a good meaty report that I know we covered some specifics on the last time we got together, but you’re also the author of a couple other reports for us that I want to make mention of today. One is our monthly CPM Report, which is actually still hot on the press. I think it’ll be out here in the next couple of days, but you start off with a title of “What the Elections Mean for Precious Metals”. You make mention of a few key points in there, right off the bat, that I’d like to cover. You started off with pre-election, post-election, and then of course Congress, and control of the Senate. Would you cover some of that for our viewers today?
Jeffrey Christian: Sure, I mean one of the points that we’re making in that report is that the uncertainty and the risk of problems, including political violence related to this election is greater than it has been probably since 1968. In this environment, those conditions and the economic, and political, and social conditions that feed that division are stimulating a lot of investors to buy gold and silver as portfolio diversifiers, safe havens, hedges against uncertainty— political, economic, financial. In that environment, we expect gold and silver prices to stay high, they’re pretty high already, and to move a lot higher over the next two or three months. Going up, we have about a month from the day that we’re recording this until election. That month will be very volatile, because of the uncertainty. We don’t expect the elections to be resolved neither on the Presidential or in some Senatorial races on election day. We think that there’s going to be a month or a month and a half, well into December possibly, where things are extremely unsettled, and volatile, and then dangerous, and that could be problematic for the world and the US economy and that could stimulate further demand for gold and silver. So, we think that the prices are going to stay high during the election period. Then after it’s all resolved, 2021 going forward, we have to live with the consequences of our vote, and the economic, and political, and social developments that will come from whomever wins both the Presidency and the Senate.
Sean Brazney: You do talk about policy impact in the report, as well. You actually go into some great detail within that report. You mention fiscal policy. You talk about the global trade and relations with China. You talk about regulations in good detail and also cover climate change in there as well. We’re going to leave that to our viewers to call in or go to the website and try to get that data. Quite a bit of information there that I think the viewers are really going to appreciate. Let’s hope one thing, that everybody seems to be thinking that this will be a contested election, so hopefully, everybody is somewhat calm and allows those results to try to come through.
Another note on the other report that you do for us, which I’m really excited about, which I believe is available now or it should be in the hours to come is a new special report CPM did for us, Why Silver? Why Now?. In that report, you do talk about there’s still some meaningful upside potential in the silver prices. I know we’ve been dealing with somewhat of a range trade between that $26 and $29 for a while. We broke under that and we’ve been kind of trading between $22 and $26, but for the investors that have been buying into this range, do you have some details for us that you’d be willing to share for us?
Jeffrey Christian: Yes and as with the monthly, obviously, there are greater details in the Monex reports. We wouldn’t be surprised to see the price of silver spike as high as $32 to $35 dollars between now and the end of the year. There are a lot of factors that come into play, including the election and its economic consequences. The silver market is relatively tight. Investment demand has been strong. You have some problems with the Bullion Banking business that could possibly make it a less liquid market and more vulnerable to those kinds of upward spikes. I should say that while we think the price could spike up to $32 to $35, we would expect it to come back off in the near term. Then longer term, we’re much, much more bullish for the period from 2021-2024.
Sean Brazney: Great! Jeffrey, your reports that you provide for us are, of course, greatly appreciated, the details that you provide for our viewers and the callers that call in for that information it is extremely helpful for anybody who is looking to buy and sell gold, silver, platinum, or palladium. Call Monex today. Talk to our account representatives and ask for our current CPM Monthly Report or ask for the newest special Why Silver? Why Now?. Please don’t forget the New Decade for Precious Metals Investing Report.