Katmandu
29th October 2011, 08:53 PM
Oct 26, 2011
With gold and silver blasting higher, along with the mining shares, as the Dow plunged over 200, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. When asked about the tremendous action in both gold and silver, Hathaway replied, “Get used to it, we are going to see $50 and $100 days both ways. To me we have had our correction, shook out a lot of people and now there is sellers remorse. Now those people are not able to get back in except by paying a higher price, so this is classic bull market action.”
John Hathaway continues:
“To the extent that this is a rigged game, the game is now over. We are not quite at stampede levels yet, but we will be. Who wants to hold euros? And if the US starts to intervene through some form of central bank asset purchases, lines of credit, whatever it is they use, nobody is going to want to hold the dollar either.
The fact that sentiment is so bad right now in gold and silver is just great, it’s really what you want. We had a complete liquidation of the COMEX longs and sentiment was terrible two weeks ago. Here we are now and everybody who has been faked out or forced out of their longs, and has maybe even gotten short, is now just wondering what to do.
So people are scratching their heads, but look at the market today, it was down 200 points on the Dow. This is all on the news flows out of Europe and maybe some disappointing news reports here and guess what the best group was? It was gold stocks, which were up about 2.5% in the face of the stock selloff.
With gold in a re-surging mode and quarterly earnings about to be reported, I think suddenly investors will think, ‘Maybe $1,700 gold is the norm? Maybe these companies are too cheap?’ With everything else going down the tubes, people are going to look for answers....
“Equity investors just can’t sit losing money in the usual stuff and they are going to have to look for answers. One of those answers is going to be gold stocks.
Everything cues off of gold and gold held that low and now looks ready to go to a new high. The move to new highs could happen very quickly. The stocks are still cheap here, even with the XAU pushing 200. It’s not too late and I think the mining stocks are at a terrific entry point.
We potentially have nothing but air to the upside in gold. We could see a big number on gold before the end of the year. Nobody is going to want these paper currencies going forward. That’s kind of where we are now, we’re close to a big breakout.
To the extent they were trying to get gold down in advance of whatever this agreement is supposed to be regarding Europe, it has clearly failed. It wasn’t very successful and I’ve got to believe that whatever bureaucrat in the basement of whatever central bank was in charge of that, he’s probably been fired. If he wasn’t, he’s probably not going to be so brave this next time around.
The central banks are losing to the extent that they are failing to keep the gold price down. You know whoever is fighting this battle is fighting a losing battle. So I just don’t think there is going to be much courage left on the central bank side. If this latest ‘London Gold Pool’ style manipulation fails and at the same time you see more of this disgust with paper currencies, that’s where you will get nothing but air to the upside.”
When you go back to the early 1970s when the first London Gold Pool was overrun, the gold price exploded six fold higher from 1971 to 1974 and during that same period silver advanced five fold.
Veterans like John Hathaway and John Embry lived through this and between the two of them they combine for almost 90 years of market experience. Both of these men are at the top of their game and they are now signaling that the manipulation of gold is coming to an end.
With gold and silver blasting higher, along with the mining shares, as the Dow plunged over 200, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. When asked about the tremendous action in both gold and silver, Hathaway replied, “Get used to it, we are going to see $50 and $100 days both ways. To me we have had our correction, shook out a lot of people and now there is sellers remorse. Now those people are not able to get back in except by paying a higher price, so this is classic bull market action.”
John Hathaway continues:
“To the extent that this is a rigged game, the game is now over. We are not quite at stampede levels yet, but we will be. Who wants to hold euros? And if the US starts to intervene through some form of central bank asset purchases, lines of credit, whatever it is they use, nobody is going to want to hold the dollar either.
The fact that sentiment is so bad right now in gold and silver is just great, it’s really what you want. We had a complete liquidation of the COMEX longs and sentiment was terrible two weeks ago. Here we are now and everybody who has been faked out or forced out of their longs, and has maybe even gotten short, is now just wondering what to do.
So people are scratching their heads, but look at the market today, it was down 200 points on the Dow. This is all on the news flows out of Europe and maybe some disappointing news reports here and guess what the best group was? It was gold stocks, which were up about 2.5% in the face of the stock selloff.
With gold in a re-surging mode and quarterly earnings about to be reported, I think suddenly investors will think, ‘Maybe $1,700 gold is the norm? Maybe these companies are too cheap?’ With everything else going down the tubes, people are going to look for answers....
“Equity investors just can’t sit losing money in the usual stuff and they are going to have to look for answers. One of those answers is going to be gold stocks.
Everything cues off of gold and gold held that low and now looks ready to go to a new high. The move to new highs could happen very quickly. The stocks are still cheap here, even with the XAU pushing 200. It’s not too late and I think the mining stocks are at a terrific entry point.
We potentially have nothing but air to the upside in gold. We could see a big number on gold before the end of the year. Nobody is going to want these paper currencies going forward. That’s kind of where we are now, we’re close to a big breakout.
To the extent they were trying to get gold down in advance of whatever this agreement is supposed to be regarding Europe, it has clearly failed. It wasn’t very successful and I’ve got to believe that whatever bureaucrat in the basement of whatever central bank was in charge of that, he’s probably been fired. If he wasn’t, he’s probably not going to be so brave this next time around.
The central banks are losing to the extent that they are failing to keep the gold price down. You know whoever is fighting this battle is fighting a losing battle. So I just don’t think there is going to be much courage left on the central bank side. If this latest ‘London Gold Pool’ style manipulation fails and at the same time you see more of this disgust with paper currencies, that’s where you will get nothing but air to the upside.”
When you go back to the early 1970s when the first London Gold Pool was overrun, the gold price exploded six fold higher from 1971 to 1974 and during that same period silver advanced five fold.
Veterans like John Hathaway and John Embry lived through this and between the two of them they combine for almost 90 years of market experience. Both of these men are at the top of their game and they are now signaling that the manipulation of gold is coming to an end.