An eye of a storm is a region of relatively calm weather in the center of other treacherous storm conditions; and that may well be the economic condition for 2023. CPM sees a large and growing number of economic, financial and political storms gathering on the horizon.

What this all means for gold and silver depends on how these trends unfold and how global market participants interpret their developing trends.

CPM Group’s expectation is that the ‘relative calm’ anticipated during at least the first half of 2023 may keep investment demand for gold and silver around the levels experienced over the last three quarters of 2022: Sufficiently high by historical standards to keep prices at historically high levels, but not so strong as to push gold and silver prices forcefully higher. Investors are not ready to let down their guard or to be lulled into a false sense of comfort by relatively decent economic trends given the enormous litany of issues that stand ready to upset the economic, political, and social apple carts. They are more likely to take any periods of lower gold and silver prices as opportunities to increase their metal holdings.

Meanwhile, beyond 2023, the calm in the eye of the storm may have passed, and all of the issues facing the United States and the world may resume their tempestuous assault. This would be expected to trigger another wave of investment demand for gold and silver sufficient to take prices to record levels for gold and near-record silver prices.