Fixing an uneven recovery and gold-silver price gap narrows

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

Fixing an Uneven Recovery

• Central banks might not be equipped to help specific sectors.
• Near-zero rates, quantitative easing designed to lift overall economy.
• Fiscal stimulus can provide targeted assistance to ailing industries.
• Job-creation programs have potential to accelerate economic growth.

Gold-Silver Price Gap Narrows

• Silver surged 157% and gold rose 42% March-July amid Fed QE.
• Both markets peaked as the Fed slowed quantitative easing.
• Silver’s outperformance tied to extreme price gap with gold.
• Gold was worth four times as much as silver in March versus 2011.