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Gold and Silver: A Calm 2023 and an Unpredictable 2024
As 2023 draws to a close, the world of precious metals has remained relatively stable, despite a backdrop of global unrest and economic uncertainty. Jeffrey Christian, the managing partner and founder of the CPM Group, shared his insights with Sean Brazney, Sales Director of Monex Deposit Company, in a recent interview. Christian’s accurate prediction for 2023’s market behavior and his forecast for 2024 provide valuable insights for investors and market watchers.
2023: A Year of Stability Amid Chaos
2023, described as “precious metals in the eye of the storm,” has seen significant global turmoil, including banking crises, conflicts in Ukraine and Israel, and doubled deficit spending. Yet, precious metals markets have remained surprisingly stable. Silver hovered around $22 to $24, with minor spikes and dips. Gold prices stayed within the $1800 to $2000 bracket, predominantly in the $1900s. The U.S. dollar index fluctuated narrowly between 101 to 105. Similarly, platinum prices remained steady, trading around $800.
Christian’s prediction of a stable market amidst global unrest has been remarkably accurate. This stability, however, might be the quiet before the storm, as Christian and his team at CPM Group foresee increased unpredictability in the coming years.
2024 and Beyond: A Forecast of Uncertainty
As we approach 2024, Christian warns of heightened unpredictability in both the political and economic spheres. He draws parallels to the 1930s, a period marked by political dysfunction and societal division in the United States. The domestic political landscape, coupled with a growing number of international crises, including tensions in Ukraine, the Middle East, and potential issues in Taiwan, contribute to this uncertainty.
Financially, the world is entering uncharted territory. The strategies used by central banks, including the Federal Reserve, to navigate the Great Recession of 2007-2011 may no longer be effective. This unprecedented economic landscape brings with it a high degree of uncertainty about the future.
