Analysts at CPM have studied the precious metals and commodities markets – including investment trends in mining equities – since the 1970s. This long and intimate involvement gives us insight into the transformations that clearly now are wracking the buy side, the sell side and the mining industry.
The CPM Group recently completed a study of over-the-counter (OTC) and exchange metals markets. As part of the 2018–2019 project, CPM bought the best list of managers at hedge funds, commodity trade advisors and commodity pool operators. Of the 6,800 fund managers on the list, 132 trade metals. Of those, 35 base their investment decisions on economic and fundamental factors. The rest traded based on price charts, price momentum and computer generated trades.
Fewer than 2% of professional money managers focusing on futures and options even trade metals, and fewer than 0.5% pay attention to trends in the metal markets, the mining industry, fabrication and investment demand, and the economic and political environments that shape these fundamentals.
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