Caesar Bryan continues:

“The time for words is over and it’s time for action now.  The problem they have is that two big countries are now in the crosshairs, Spain and Italy.  It is incredibly difficult because they are too big to fail, but they are also too big to rescue.

So we will either see major central bank action, printing of money and purchases of the debt, or Germany, along with other key nations, has to come in and guarantee the sovereign debt....

Continue reading the Caesar Bryan interview below...


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“Otherwise it is difficult to see how the euro survives in its current form.

Whatever course they decide to take, the bottom line is either way it will be very positive for gold and other hard assets.  It is quite possible the gold market put in a low.  The $1,550 area has been tested over and over again and has continued to act as strong support. 

The question at this point is, will there be a break to the upside?  In the end, of course gold is going to appreciate.  It’s just a matter of when and how.  We are now moving into the more seasonally constructive period for gold.  We also know central banks want to add to their existing positions.  For that matter, so do private investors.

So the reality is there is plenty of upside in the gold price.  The backdrop is and continues to remains very positive for gold.”

Caesar also added: “On the US side we’ve had three straight months of lower retail sales.  Unemployment is high, the economy is sluggish, and yet the Federal Reserve is ‘activist.’  So I would expect more action from the Federal Reserve whether it is this meeting or the one in September.

There is a chance the Fed may initiate more QE tomorrow.  They may even tinker with what they pay the banks on their excess reserves, which is what the Europeans did.  The important thing here is the Fed is ‘activist,’ and the economic news has been weak.  That is a recipe for more stimulus.

The question many market participants have been asking lately is why hasn’t the gold market done more?  Sentiment in the gold market has been extremely negative, but that will change over time as gold strengthens.  Many have also been talking about the weakening Indian rupee and the subsequent downturn in Indian demand.  The reality is the gold price is not going to depend on Indian imports, instead I believe it’s going to be Western investment demand driven.

The big picture remains central banks around the world are conducting a giant monetary experiment.  They want to reflate and they want real growth.  If they are unable to get real growth, they will settle for nominal growth in the economies.  This nominal growth will lessen the debt burden, but that will require a great deal of money printing.  This is the type of environment where investors are forced to own real assets, and the ultimate real asset is gold.”

Caesar had this to say regarding the mining shares:  “The mining shares are a great opportunity for any investor who is prepared to take anything more than the next quarter’s view.  The problem is that investors everywhere have become very short-term.  This is a result of all of the uncertainty.

Right now gold investors are focused too much on the rearview mirror.  They need to be more focused on the long-life of the various company’s reserves, and the gold in the ground that can be added to reserves.  As gold begins to rise, gold equities will begin to perform and money will come pouring back into the sector.”


© 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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