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Likelihood of 'political violence' at historic high, how would gold react? - Jeff Christian

Kitco News

Jeff Christian, Managing Partner of the CPM Group, discusses with David Lin, anchor for Kitco News, the likelihood of certain lower probability events to happen, and the important drivers of gold besides inflation.

“I think the likelihood of political violence is greater in the United States today than it has been for any period of time probably since the 1930s when you had the America First Movement, which was saying [America] should side with the Nazis and break our relations with the French and the British, and we should install a Nationalist Socialist government in the United States,” Christian said.

Christian added that pandemic was not really a low-probability event if you consider that scientists have for years, predicted that the world would experience another global pandemic and have been working on counter-measures.

On gold, the yellow metal is a good portfolio diversifier but only outperforms inflation during periods with the consumer price index exceeds 7%, while it lags behind the CPI when inflation hovers around 2-3%.

His comments come a day before June’s CPI data is released on Tuesday, July 13.

For Christian’s outlook on gold and how gold reacts to inflation, watch the video above. Follow David Lin on Twitter: @davidlin_TV (

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.