Jeffrey Christian: Gold and Silver, The US Election - Existential Implications

Tom welcomes back the Managing Partner of the CPM Group, Jeffrey Christian to discuss the Fed, Gold and the current economic realities of U.S. and the globe. Jeff shares his views on the Fed aiming for a long-term inflation average of around 2%, with fluctuations accepted between 1.3% and 2.8%. He asserts that while the target remains unchanged, the Fed is being more explicit about it. He speculates on the reasons why inflation is "acceptable" to the Fed.

Jeffrey discusses the likely September interest rate reduction and potential surprises. He anticipates a quarter-point decrease followed by further evaluations in November and December due to recessionary fears.

Jeff discusses the US economy's influence on the global stage, the significance of the upcoming US election, the importance of data reliability in today's digital age, and the drivers of gold and silver prices.

Central banks' roles in gold demand, with decreasing holdings by developed countries and emerging economies buying for monetary reserves, are also explored. The history of non-alignment among developing countries and the uncertain future direction of BRICS is touched upon.

Jeff explains the drivers of long-term silver prices including investment and industrial fabrication demands, with relatively low net investment demand leading to unremarkable price performance. Industrial demand for platinum and palladium is substantial but not expected to surge significantly. Fear acts as a catalyst for investments into these metals although there primary use is industrial rather than having a monetary function.

Time Stamp References:
0:00 - Introduction
1:08 - Fed Anticipation & CPI
3:25 - Acceptable Inflation?
5:33 - A Fed Sept. Surprise?
8:50 - Recession Risk & Fed
10:00 - Global Effects
13:04 - 2024 Politics & Markets
16:23 - U.S. Policy & Regulations
21:30 - Ignorance & Progress
24:12 - Gold & Silver Outlook
28:43 - Long-Term Thoughts
36:25 - Dollar Vs. Gold Demand
40:50 - BRICS Alliance
45:47 - Drivers for Silver
49:13 - Platinum & Palladium
52:54 - Wrap Up

Talking Points From This Episode
- Fed's fall rate expectations and possibility of a surprise.
- Global economic outlook and what to expect around the election cycle.
- Gold's global role and the limited monetary role of other precious metals.

Guest Links
Twitter: https://twitter.com/CPMGroupLLC
Website: https://www.cpmgroup.com/
Questions Email: info@cpmgroup.com
YouTube Link: https://www.youtube.com/c/CPMGroup/videos

Jeffrey Christian is the Managing Partner of the CPM Group. He is considered one of the most knowledgeable experts on precious metals markets, commodities in general, and financial engineering, using options for hedging and investing purposes. He is the author of Commodities Rising 2006.

Jeffrey Christian has been a prominent analyst and advisor on precious metals and commodities markets since the 1970s, with work spanning precious metals, energy markets, base metals, agricultural markets, and economic analysis. The company was founded in 1986, spinning off the Commodities Research Group from Goldman, Sachs & Co and its commodities trading arm, J. Aron & Company.

He has advised many of the world's largest corporations and institutional investors on managing their commodities price and market exposures and providing advisory services to the World Bank, United Nations, International Monetary Fund, and numerous governments.