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John Hathaway continues:
“We concluded then, and still maintain, that gold mining equities represent a compelling investment strategy to participate in the secular bull market in gold bullion, and conversely, the secular bear market in paper currencies...We believe that the decline in both the metal and the shares has run its course. We also believe that this painful correction has set the stage for significant new highs in both the metal and the shares in 2012.
Since the global credit meltdown of 2008, governments in the Western democracies have stepped in to stabilize the financial and economic system...This approach bought time, but now time is running out as sovereign credit itself is under attack...The contagion is not limited to a few peripheral states in Europe that have spent beyond their means.”
Hathaway had this ominous warning for what lies ahead in 2012: “What this portends for 2012, we believe, is unfortunately, further turbulence in the financial markets, anemic economic conditions, and ultimately, overt and undisguised monetary debasement. The flashpoint for gold and related equities will, in all likelihood, occur when central bankers and political leaders cave in to market stress.”
This is a timely and powerful piece from one of the great ones. KWN will be speaking with Hathaway next week to discuss the entire piece as well as the current emotional state of the gold market. As a final preview, Hathaway noted, “Gold has a history of shaking out all but its staunchest holders and making losers out of sold out bulls.”
To learn more about John Hathaway and his management services CLICK HERE.
Hathaway’s new piece will be released shortly, but to read his tremendous report from September 15th titled, “The Golden Mulligan” CLICK HERE.
© 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 This material may not be published, broadcast, rewritten, or redistributed.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.
Eric King
Hathaway - Decline in Gold & the Shares Has Run its Course
KWN wanted to share some key portions of an upcoming gold report from four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. This will be one of his most important reports in years because of the content and also the current mindset which dominates the gold world. Here are just a few observations by one of the most extraordinary 5-star rated Morningstar fund managers: “2011 was a good year for gold bullion, up 11.3%, but a tough year for gold stocks which declined 18.3% based on the XAU index of gold and silver stocks. We addressed the reasons for the disparity between the performance of gold bullion and gold mining stocks at length in our web site article (The Golden Mulligan-September 2011).”
© 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.
January 5, 2012
