CPM Group: Gold excellent investment at current prices on a long-term basis

New York-based consultancy CPM Group sees gold as an “excellent investment at current prices” in the long term, as a steep rally could still be a couple of years away. 

The institution included the view in a late-Monday market commentary downplaying market speculation about the Comex possibly not having sufficient warehouse inventories to meet hypothetical demand.

Such rumors come out from time to time, but CPM Group suggests that while the percentage of Comex gold open interest covered by total Comex reported stocks has fallen over the past year and a half, it remains high by historical standards and “presents no perceptible risk of imminent problems with deliveries.”

The constancy also shared a view on the yellow metal.

“CPM Group views gold as an excellent investment at current prices and market conditions, on a long-term basis,” the body said.

CPM Group does not expect prices to jump sharply for two years, however, "since we do not see any exogenous economic or political problems become so threatening as to stimulate sharp increases in investment demand until late 2017 at least.”