Latest CPM Group News
Sep 30, 2023
Author | Broadcaster | Journalist | Commentator | Speaker. Got it! NEW YORK - JANUARY 9: Gold bullion bars and coins are seen for sale at Manfra, Tordella and ... [+] Brookes, Inc. January 9, 2003 in New York City. The price of gold has risen by nearly 30 percent over the past year with investors looking for stability as war with Iraq has become more likely. (Photo by Mario Tama/Getty Images) Getty Images Gold prices took a tumble over the last month. But experts say there’s reason to be optimistic for a bounce back in short order. The price of gold recently fetched $1,872 per troy ounce down 3.7% from $1,944 on September 1, according to data from the London Bullion Market Association . The SPDR Gold Shares exchange-traded fund, which tracks the price of gold, fell similarly. So why is gold dropping? “ It's been primarily investor and financial Market concerns over interest rates and interest rate activity,” says Jeff Christian, managing partner at New York-based commodities consulting firm CPM Group in a recent video. Higher interest rates, or worries about inter rates going higher, tends to make gold investments less attractive as the commodity doesn’t pay dividends or coupons and instead costs money to store. Bullion’s downward price move came in tandem with investors dumping some of their gold holdings. In the month through September 27 (the latest data) total outflows from the SPDR Gold Shares ETF totaled more than $912 million, according to data from financial research company VettaFi. The SPDR Gold Shares ETF is the biggest such fund in the world. But the truth about the drop shows it may have largely been based on unfounded worries about the future of the economy and certain aspects of the financial markets. For instance, the worries over rising interest rates may be a needless concern. MORE FOR YOU Christians notes that the Federal Reserve’s own expectations shows falling interest rates within a few months. “They have interest rates pretty much at their peak right now,” he says. In addition, current interest rates are still low compared to where they were before the 2008 financial crisis, he says. Putting this in context, a six or seven percent mortgage before the Great Recession was seen as a good deal. Some people are also concerned that the U.S. will dip into a recession next year. It may happen, Christian says. But recessions are often mere statistical blips. Just look at the year 2000 when the economy was deemed to be in recession but no overall contraction occurred, according to government data . “I'll say it again if you look at the oh the real economy supply and demand for goods and services what you've seen is a lot more strength than a lot of people imagined and expected,” Christian says. Where the higher interest rates have likely taken an economic toll has been in specific sectors of the economy such as housing and automobile manufacturing. “Those are two very important sectors of the economy but they're also very interest rate sensitive, Christian says. He notes that if one delves into both sectors you find the troubles are more related to imbalances between supply and demand. Christian says: “More and more people say I don't even want to own a car I'll rent a car I can do ride sharing,”“If I do want a car I want a smaller car I don't want to pay 40, 50, or sixty thousand, I'd like to pay 25 or 30 or thirty five thousand for a car.” However, the automakers have an incentive to supply higher margin vehicles such as pickup trucks and Sport Utility Vehicles as they have higher prices with much bigger profit margins, he says. Similar is true in housing with the housing industry still wants to make mcmansions because they have higher margins, he says. However, there is more demand for smaller houses and apartments, he says. In other words, the worries about the economy cratering due to higher interest rates likely are overblown. And that’s also likely why gold prices will bounce back. Follow me on Twitter or LinkedIn . Check out my website or some of my other work here .
CPM Group Frequently Asked Questions (FAQ)
Where is CPM Group's headquarters?
CPM Group's headquarters is located at 338 Hennessy Road, Hong Kong.
Who are CPM Group's competitors?
Competitors of CPM Group include Clariant and 4 more.
Compare CPM Group to Competitors
Dulux manufactures and markets paints, coatings and specialty chemicals. It offers decorative coatings as well as performance coating solutions to automotive, consumer electronics, power, aviation, shipping and leisure craft, construction, oil and gas, water and waste water, and food and beverages industries. The company is located at Gurugram, India and is a subsidiary of AkzoNobel Group.
Sinocompound offers research, development and production of homogeneous catalysts, supported catalysts, ligands, and high-purity electronic chemicals. The company provides global customers with an integrated custom synthesis service including small test samples, pilot tests and commercial products. It was formerly known as Sinocompound Catalysts. It was founded in 2008 and is based in Suzhou, Jiangsu.
Khepra develops renewable energy reactors to break down plastics and agricultural waste. It uses proprietary technology and excess renewable electricity to break down plastics and agricultural waste. The company was founded in 2019 and is based in San Francisco, California.
Boysen Paints is a paint manufacturing company. The company manufactures and supplies both architectural paints and construction chemicals to local and international markets. It was founded in 1953 and is based in Quezon City, Philippines.
Adaptive Surface Technologies operates as an industrial technology and high-tech materials company. The company produces additives and coatings that repel fluids, contaminants, ice, and biological fouling for multiple industries including manufacturing, marine vessels, and medical devices. It offers solutions for a wide range of materials, including plastics, metal, ceramics, glass, and even concrete. The company was formerly known as SLIPS Technologies. It was founded in 2014 and is based in Hopkinton, Massachusetts.
BPF Schilders is a financial institution. It provides pension, retirement, disability, and death benefits to painting industry workers. It was founded in 1951 and is based in Zeist, Netherlands.