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Gold is resilient but silver struggles: economic surprises and indicators

Kitco Media
By CPM Group
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Gold is resilient but silver struggles: economic surprises and indicators teaser image

In this presentation, Jeffrey Christian of CPM Group discusses the pottential for contrasting near-term performances of gold and silver prices, and some of the economic and political reason behind the potential divergence.

This week stronger-than-expected economic data revealed a 2.8% growth in real GDP for the second quarter, leading to heightened market speculation about the potential for a soft landing and whether the United States will avoid a recession. Despite the positive economic indicators, Jeff points out ongoing political and financial challenges both in the U.S. and internationally, leading to CPM Group's view that a recession will still occur, but later than initially expected.

Jeff also discusses the demand for gold driven by private investors and high net worth individuals, even as central banks have scaled back their purchases. He contrasts this with silver's more volatile performance, discussing its most recent price movement and potential for further decline.

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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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