Central banks, around the world-‘We don’t want a strong currency.’ Obviously that’s a positive backdrop for gold.
With continued volatility in gold and silver, 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 we are about to see massive QE from Asia. He also said investors should expect the rest of the central banks around the world to follow suit because none of them wants a strong currency. Here is what Caesar had to say about the situation: “Well, the actual gold price is holding up quite well. The backdrop for gold is solid. As an example, in Japan they have a meeting on Friday, the Bank of Japan does, and it seems they are setting themselves up for a stunning, major, new accommodative move.
Caesar Bryan continues:
“Japan is already buying government bonds and they are likely going to extend that on Friday into buying other assets. But in any extent, extending their balance sheet, they need the yen to decline in value. They need this to help their exports and stock market.
China is also beginning to loosen monetary policy. Europe, despite what the ECB says, they have done over $1.3 trillion in the LTRO program. They are also under pressure to ease. They are under pressure to do more to help Southern Europe.
Here in the US, ‘Operation Twist’ ends in June. We know the Federal Reserve is very concerned about house prices and they are also concerned about unemployment….