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Gold and silver spike while stocks struggle: What happens next!

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By CPM Group
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In this presentation, Jeffrey Christian of CPM Group discusses the sharp surge in gold, silver, and other metals prices following renewed political and economic uncertainty in the United States and abroad.

Jeff explains how precious metals prices spiked after news that the U.S. Department of Justice had launched a criminal investigation related to the Federal Reserve, raising serious concerns about the perception of Fed independence. He discusses why challenges to the Federal Reserve’s credibility directly undermine confidence in the U.S. dollar, Treasury markets, and global financial stability.

Jeff also explains why investment demand, rather than fabrication demand, is driving much of the current price action for the metals, and why none of the underlying political, economic, or financial risks that have supported higher precious metals prices are likely to improve.

He also discusses inflation data from the latest CPI report,  and persistent price pressures in housing, food, and services, and explains why inflation remains a complicating factor for monetary policy.

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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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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.