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Caesar Bryan - Gold & Silver Plunge, Europe in Continued Crisis

With gold trading near $1,620 and silver around $31.50, today King World News interviewed 25 year veteran Caesar Bryan. Gabelli & Company has over $31 billion under management and Caesar Bryan has managed the gold fund since its inception in 1994. Caesar told KWN that Spanish bonds have weakened and are back to levels seen prior to the LTRO, so Europe is headed for trouble once again. But first, here is what Caesar had to say about the plunge in gold and silver: “Well, Eric, I often recall the late Murray Pollitt would often tell me, ‘This is the job of the gold bull market on days like this, to shake us out so we don’t participate on the upside.’ So investors need to hang tough and hold on to their positions on these down days.”

Caesar Bryan continues:

“Obviously, for those long of gold this action is very disappointing. You always have to go back to the fundamental reasons why you are holding gold and gold equities at times like this. The fact is the global economies are experiencing a very weak recovery, if at all, and the monetary authorities are still in an easy mode.

All of this will work to gold’s advantage in the medium-term. At times like this, professionals will revisit why they are in this market and when they come to the conclusion that it makes sense, they will add to or at least maintain their positions.

I have been doing this for a quarter of a century and I’ve discovered over time it’s a very easy sector for the weak hands to be shaken out....

Continue reading the Caesar Bryan interview below...

To hear the man with over 40 years of experience in the resource

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the current financial storm click on the logo:

“When you get a short-term price correction, it’s easy for the weak-holders to sell. Of course, that’s the wrong thing to do.

The reason it’s the wrong thing to do is that we’ve been in a bull market, that’s hardly been noticed by the public, for over a decade. So that’s the gold price. Now, the gold equities are having a very difficult time and have for a while.

As a professional manager of a gold equity fund I will review the fundamentals of the companies we are invested in and if all of the fundamentals are in place, then I know those equities will come back.”

Caesar had this to say about silver: “Silver has been more volatile than gold, but the silver price is still over $30 and this is very, very good for the silver producers. The recent lows for silver are around this area and silver still looks good. It’s probably just being buffeted around by what’s going on in the gold market.”

Caesar also added: “As I mentioned earlier, we are in this stumbling recovery in the United States. If you look at Europe, it is in a no-growth situation and meanwhile there is still a lot of leverage in the system.

The Spanish just had a very unsatisfactory auction of three and four year paper, just above the minimum, at a higher rate. I mean the rate is almost back to what it was in December, before the LTRO. The European crisis, it’s more than a crisis, it’s a chronic sovereign debt issue, and this will be back in the headlines as we go forward.

Circling back to the US, look at the numbers. In reality, there has been a very small decline in the total credit market debt as a percent of GDP. We are up at over 250%. So in this type of environment, the authorities are very mindful of trying to maintain a decent level of nominal GDP growth. This is because they are attempting to lessen the impact of the significant debt levels or debt load.

That trend isn’t something that is going to go away in a day or a week. This is why savvy investors have a stake in the ultimate money, the ultimate real asset, which is gold. We are in a very unusual, in fact unprecedented situation now with the central banks being so proactive, and this is why it’s so prudent to maintain exposure to gold.

I would also remind KWN readers that Fed Chairman Bernanke is an expert on Japan and I think he’s very mindful of what happened there. We have the Japanese experience on the one hand and what is going on in the housing market on the other. So, I think the Federal Reserve is going to be very much on the side of adding to their accommodative policy looking forward and that is very gold positive in the long-run.”

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

Eric King

KingWorldNews.com

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