Bryan (at Gabelli) - Gold Could Easily Double From These Levels

"Today 25 year veteran Caesar Bryan surprised King World News when he spoke about gold moving up another $1,900. He said, “Gold could easily double from here.” Bryan, from Gabelli & Company, also stated, “... there is no question that gold is undervalued today.” 

Here is what Caesar had to say: “The balance sheets of the major central banks, over the last several years, have gone from just over $2 trillion, to almost $10 trillion. We’re talking here about the Fed, ECB, BoE, and the BOJ.”

Caesar Bryan continues:

“Most of that increase has been in the last few years, since the financial crisis. We are clearly not at the end of this, and you could argue that the rate of increase is actually accelerating. I don’t believe that has been properly reflected in the gold market yet.

The gold market breached $1,000 in the beginning of 2008, fell toward the $700 level after the Lehman crisis, and then went back over $1,000 in 2009. Since that time we have had a dramatic increase, a more than doubling of the balance sheets of just those four central banks....

“The underlying price of gold hasn’t even kept up with the increase in the balance sheets of the central banks. So there is no question that gold is undervalued today. As these central banks continue to expand their balance sheets, the upside for gold is very significant.

It’s not as if investors are overweight in gold. On the contrary, central banks and private investors have a very tiny exposure to gold. So should there be a discussion about changes to the financial architecture, with a role for gold being part of that new architecture, then gold would go much higher. Gold could easily double from here..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/28_Bryan_%28at_Gabelli%29_-_Gold_Could_Easily_Double_From_These_Levels.html