opinion

The success of the Fed in curbing economic volatility and what it may mean for gold and silver

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By CPM Group
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Jeff discusses how the Fed impacts economic volatility, and provides a brief update on gold and silver.

CPM Group's Jeffrey Christian discusses economic volatility, and why the Federal Reserve is not the problem, but in fact a solution. He delves into the history of state versus nationally chartered banks, discussing how state banks would lend out money on a fractional reserve currency without any sort of auditing and oversight leading to state banks counterfeiting currency, and an overall lack of faith in the system. This caused tremendous instability in the US economy, compared to now, when the Federal Reserve plays a hand in stabilizing the economy. Jeff also gives a short update on gold and silver, focusing on the reasons behind the recent rally, and why CPM Group expects some short-term bullishness, but is concerned about the price outlook over the next several months.

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CPM Group

CPM Group is a commodities research, consulting, financialadvisory and commodities management firm providing independent research,analysis and advisory services related to commodities markets, corporate andproject finance, and the financial management of exposure to commodity orientedinvestments.

We started our business in 1986 predicated on the idea that commoditiesresearch and advice is best delivered by independent experts who do not work forbanks, brokers, mining companies, or any other entity that has interests thatcould conflict with the best interests of the clients receiving the research,analysis, and advice.

All of our work is driven by fundamental commodities research and economicanalysis. As we undertake our research into individual commodities markets wegather a tremendous amount of information and develop an enormous body ofextremely high quality, unbiased analysis of the markets and the companies thatare involved with individual commodities. The outputs of our research andanalysis take the form of research reports, specialized and targeted consultingrelated to these markets, financial advisory services ranging from corporate andproject finance structuring to equity introductions, and managing specificcommodities and investment positions for clients.

CPM Group continues to demonstrate the economic value and financial worth ofsuperior research, information, and analysis. Our research is based onmicro-economic analysis of the individual components of each commodity market,wedded with a top-down macro-economic analysis of the global trends affectingthese markets. We apply the results of that analysis to our research,consulting, and advisory services.

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