Gold and silver forecast and Russian gold - often amazed, but never surprised
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CPM Group's Jeffrey Christian provides a brief Gold and Silver update for the second quarter and the second half of 2022.There is an explanation as to why and how the 2020 massive amount of money creation may not lead to either hyperinflation nor unreasonably higher gold prices, how monetary authorities have effectively neutralized the inflationary risks of past periods of monetary largess over the past 40 years, and how they may do it again. Investors betting on an "inevitable" super rise in gold prices as a consequence of the 2020 monetary accommodation are likely to be disappointed once again.
Jeff then discusses current conditions in the Russian gold market, which is being overwhelmed by citizens wanting to buy small gold bars in the face of massive economic dislocations. Banks are selling the gold they buy from domestic miners and refiners to these retail investors at premium prices, and are not selling gold to the Russian central bank at discounts. The Central Bank of Russia meanwhile ended its earlier proposal to buy gold at a discount to market prices.