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John Hathaway continues:
“I would not be surprised to see gold revisit $1,900 some time this year, and maybe even trade over $2,000. You know we are starting to see a lot of central bank buying of gold. The central banks know the story. You have to say they are informed buyers. They are just adding to their gold reserves.
It’s not the headline countries, it’s places like the Philippines and Mexico....
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“If you’re a wealthy Chinese businessman and you are accumulating all kinds of wealth in the form of Chinese currency, you’ve got no place to go. You basically have a currency you can’t exchange, other than black market, for anything.
So, silver and gold are the go-to alternatives. Their banking system (China’s), it’s hard to believe I can say this, but it’s worse than the one in the West.”
When asked about the bank runs, Hathaway warned, “Investors and savers are nervous and I think it’s contagion.”
When asked about gold, Hathaway responded, “We’re kind of in a grind. I think we’re going to be backing and filling, but I do think that before the year is over, and maybe as soon as the summer, we could see $1,900 again. You know the fuel for gold to go up has never left.
Gold went up and had this long correction of nine months. I think it’s over with. It got everybody scared, for sure. Gold seems to have found its footing. The things that drove gold up are still alive and well, and maybe even more so than they were last year.
The technical position of the market following this correction is much more solid than it was nine months ago. So I expect the rest of this year to be pretty good for people invested in precious metals and gold mining stocks.”
Hathaway also added: “I can tell you that I was in California last week and I met a lot of people who are very familiar with the issues. They are buying physical gold. Wealthy, private investors are buying gold.
I think the follow through will be very, very rewarding for people who can write the buy tickets here. I know people’s hands are shaking. People are generally turned off by the downside action of the last nine months, but if you want to put new money to work, this is the time. These are the conditions that lead to very good returns.
We are sort of on the verge of a transition to a different monetary regime. I don’t know the outcome, but I do think that almost any scenario would involve a significant re-pricing of gold.”
The KWN John Hathaway interview is available now and you can listen to it by CLICKING 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.
The Nigel Farage and Don Coxe audio interviews are available now. Also, be sure to listen to this week’s line-up of other KWN interviews, which include Sean Boyd, Egon von Greyerz and Gerald Celente by CLICKING HERE.
Eric King
Hathaway: Central Banks & Wealthy Are Now Big Buyers of Gold
Four-decade veteran John Hathaway told King World News, “I was in California last week and I met with a lot of people. They are buying physical gold. Wealthy, private investors are buying gold.” The prolific manager of the Tocqueville Gold Fund also said, “we are starting to see a lot of central bank buying of gold.” Hathaway had this to say about gold bouncing solidly off the low $1,500 level: “That’s very encouraging. That was a very good test of the December low at $1,523, and it seems to me we are in good shape for six months or more. It could be (gold gaining) for the next two years.”
© 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.
May 25, 2012
