Why The Gold And Silver Selloff Is Fooling a Lot of Investors

Jeffrey Christian of CPM Group analyzes recent volatility in precious and base metals markets, attributing sharp price declines to short-term profit-taking rather than the end of a longer bull market trend. He points to factors like the averted government shutdown and the nomination of Kevin Warsh as potential Fed Chairman as triggers for this downturn. Christian emphasizes the importance of considering longer-term trends, citing historical examples where short-term declines lasted for extended periods. Despite the current dip, he believes underlying geopolitical tensions, such as those involving Iran, will continue to support precious metal prices. He also addresses concerns about who will buy U.S. Treasuries, arguing that demand remains strong from both domestic and international investors, with the Federal Reserve as a backstop.