Caesar Bryan continues:

“This is actually similar to other experiences that we’ve seen in the last year where there has been a very sharp, sudden pullback in the gold market.  But what I can tell you is the seller was not looking to maximize his revenue from the sales and to market participants like myself and others this is strange.  The design of the selling raises serious red flags and leaves some questions unanswered.

I can only say the action was very odd and that’s as far as I want to go because I don’t know what the seller’s or sellers’ motivations were.  We have seen this on a number of occasions over the last year where indiscriminate large selling will come in and the gold price falls like a stone.  Sometimes gold falls $50 to $80, literally, within a few minutes....

Continue reading the Caesar Bryan interview below...


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“At the end of September there was a big move like this.  Unlike yesterday, gold has even fallen in periods where this is thin volume.  It’s very odd market behavior because you cut through key levels on the downside in a nanosecond. 

But in the past, the gold market has absorbed this selling and then begins to move upwards.  If you look at the gold chart, we’ve had these big downward movements in December, we had them in September and also in August.  It’s just like, ‘Here we go again.’ 

It usually lasts a few days and then the market comes back.  As I said earlier, it’s odd.  As Jean-Marie Eveillard correctly pointed out yesterday, central banks intervene in the foreign exchange markets, maybe they intervene in the gold market.

Interestingly enough, physical buyers appeared in the Far-East, and gold equities were not that badly mauled yesterday.  So far, the mining shares are bouncing back today.  This is just what we have to put up with.  It’s certainly not fun, I mean one gets sick to one’s stomach when this happens, but nothing has changed in the fundamentals. 

The people in the Far-East are still buying and central banks are buying.  Only yesterday the ECB announced the result of their LTRO program where they lent 530 billion euros, which is over 700 billion US dollars.  This lending was to over 800 institutions out of 2,500 that could have applied.

Remember, this was on top of the almost 500 billion euros, so nothing has changed in terms of central bank activity.  We still have an extraordinarily loose and accommodative monetary policy. 

In the end it was a nasty day for the longs, but it was also a buying opportunity for those wishing to commit capital into the metals market.  It’s possible for gold to dip a bit more and break the 200 day moving average, which is currently at $1,675.  But what people need to remember is that no central bank wants a strong currency, none of them.  The last two holdouts have given up, the Swiss and the Japanese.

Will there be a better buying opportunity over the next few days?  Who knows?  But we were certainly given one yesterday.  People have to remember we could also have a rapid move to the upside.  So far it’s been very orderly on the upside.  The only disorderly market we seem to get is when somebody comes in to sell a lot.  Of course, I believe there will come a time when there’s a disorderly market on the upside.” 

To learn more about Caesar Bryan, his management services and the Gabelli Gold Fund CLICK HERE. 

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Eric King

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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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