In this presentation, Jeffrey Christian of the CPM Group discusses the sharp rise in prices for gold, silver, and other metals following renewed political and economic uncertainties in the United States and abroad.
Jeff explains how precious metal prices skyrocketed after the 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 the Fed’s independence. He elaborates on why the credibility of the Federal Reserve directly undermines confidence in the U.S. dollar, the markets for government bonds, and global financial stability.
Jeff also explains why investment demand, rather than demand for manufactured products, is driving much of the current price movement in metals and why none of the underlying political, economic, or financial risks that have led to higher precious metal prices are expected to improve.
He also discusses the inflation data from the latest CPI report and the persistent price pressures in housing, food, and services, and explains why inflation remains a complicating factor for monetary policy.
00:00 – Gold, Silver and metals rise as markets react
02:00 – The investigation of the Fed and why it matters to investors
04:40 – Why investment demand is driving up prices
07:20 – Silver, platinum and industrial metals explained
10:40 – Inflation, CPI data and risks of Fed policy
13:45 – What this means for gold, silver and the markets
