Precious metals bull market is not over: CPM group

New York (Platts)--8Sep2006

Carlos Sanchez, analyst with the CPM Group, believes that the massive
liquidation taking place in precious metals is not an end to the bull market.
"For gold, a decline of $10 is not abnormal," said Sanchez. "We've seen gold
fall $10 one day then go up $15 the next day, so this is not an unusual
situation."

According to Sanchez, the circumstances that triggered a spiral in
precious metals prices are pretty much intact. "The war in Iraq is not over,
the situation with Israel and the Palestinians remain volatile -- and then
there is North Korea and Iran," both of which have a standoff with the West
over their nuclear intentions. The dollar also remains historically weak
against other major currencies.

These conditions are likely to keep precious metals prices firm once this
period of liquidation was over, he added.

--Ovid Abrams; ovid_abrams@platts.com

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