CPM Group’s Christian Sees Lower Silver Purchasing in 2014

Mining Weekly reported that at this week’s Prospectors and Developers Association of Canada conference, Jeffrey Christian, managing partner at CPM Group, said he expects net physical silver purchasing to drop in 2013.

Christian said:

The amount of net purchases of physical silver is projected to fall again this year. [However,] we think that the bulk of the drop was last year.

In 2013, investors said: ‘wait a second, the world is not collapsing. Hyperinflation, which had been promised to me by all sorts of Internet pundits, gurus and other monetary authorities, has yet to appear. In fact, we’re more worried about deflation than inflation … so let me take some of this money in silver, a depreciating asset, and move into appreciating assets, such as US real estate and stocks.’

By the end of March 2013, [silver had] the biggest short position since 2005. It’s important to note this, because the price decline came in April. Goldman Sachs said ‘go short’ in April about a month after everyone had finished building short positions, so they weren’t necessarily the market leader. They were looking at the charts and probably said: ‘Gee, maybe we should try and get in front of this band.’

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