My Blog
Hathaway - Sell Side to get Slaughtered on Bearish Gold Calls
With the recent strength in the gold and silver markets, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. When asked about the action in gold and what he expects going forward, Hathaway replied, “It’s very constructive to me. It’s backing and filling and backing and filling. We’ve had what I think is now a pretty good bottom established, I guess it was in September when it got down below $1,600. It hasn’t made a new high, but we’re just establishing a base for the next big move.”
© 2011 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 This material may not be published, broadcast,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.
November 11, 2011
John Hathaway continues:
“It feels pretty good to me. Basically what I’m focused on here is what I thought would happen and that is the gold mining companies would report very strong earnings and start increasing their dividends, both of which they’ve done. I’m beginning to see a greater willingness to normalize let’s call it $1,700+ gold as a base for future earnings.
Now the sell side guys are just behind the curve on this. We took a look the other day at the average price expectation for earnings models by sell side analysts five years from now. The number came out, and you won’t believe this, it’s a composite of 18 different sell side firms, to $1,300 (for gold).
It just shows you how far behind the curve most of these sell side analysts are....
Continue reading the John Hathaway interview below...
Advertisement
To hear legendary company builder Rob McEwen, original Founder of
Goldcorp discuss which company he invested $50 million
of his own money in and why click on the logo:
“I don’t fault them necessarily because they are sort of enslaved to a regime in their shops where some person makes macro calls on what the world is going to look like five years from now. Maybe in that macro call gold has to go down.
I don’t really know, but I do know that the price that these guys are using is absolutely incomprehensible and out of touch with what’s going on.”
When asked about future Fed policy and its impact on gold, Hathaway stated, “The easy way out, the default mechanism is inflation and everybody knows it now. Bernanke isn’t going to say it in so many words, but the people who inspire him certainly are. If you look at the inflation numbers, headline inflation is now almost 4%. Inflation is rising.
I think gold is on its way to becoming more commonplace and widely accepted. But if you talk to professional investors I would say nine out of ten are sanguine about the whole thing and say, ‘Gold has been a good idea but I’m focused on ten other things.’ It’s definitely not mainstream.”
The KWN interview with John Hathaway will be available shortly and you can listen to it by CLICKING HERE.
© 2011 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.
Eric King
