John Hathaway continues:

“All of that tells me we’re pretty darn close to the end of this (correction in gold).  I know it’s exasperating and painful.  I feel the same thing myself because I am an investor.  You’ve got to look at the bigger picture, and the bigger picture is that we probably aren’t going to have much in the way of economic growth.

That means the deficits are not going to close the way the optimists are saying.  The Fed is going to have to continue to buy Treasury bonds at a very high rate and expand their balance sheet or interest rates are going to skyrocket....

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“If that (interest rates skyrocketing) happens then all bets are off because higher interest rates kill any chance of getting a balanced budget or a reasonable budget deficit number.  Secondly, that would kill the economies.

That’s the bigger picture that I see.  Gold is just kind of going to sleep here because we’ve been in this extended correction.  So we are psychologically at the give-up phase on gold.  I think Gartman shorted it (gold) yesterday which is very bullish for us.

The second thing is for the last 3 years the typical investor has made money in stocks or he has been told that he could have made money in stocks, and so that’s competition for gold.  Wouldn’t you know it, when CNBC starts to put how many points we are from the 2007 highs on the screen, it reminds me of where they were back in 2000 with the DOT-COM stocks.

You have had this competition from the stock market, but that could change at any time without warning, and when it does gold will be the big beneficiary.”

When asked about the physical gold market, Hathaway responded, “It’s tight.  I was just reading something on India yesterday.  Despite the Indian government’s best efforts to dissuade the Indians from importing gold, because they want to improve their balance of payments, those numbers are very strong (for importing gold).

Imports into China through Hong Kong are running at a very strong pace.  So the physical market is tight, and as usual the selling is all paper gold on the COMEX.”

Hathaway covered a tremendous amount of ground in a short period of time in this interview.  His audio covers what to expect from gold and silver, when gold will see new all-time highs, how the mining shares will perform and much more.  The King World News audio interview with John Hathaway is available now and you can listen to it by CLICKING HERE.

© 2013 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 interviews with Felix Zulauf, John Hathaway, Gerald Celente and Eric Sprott are available now.  Also, be sure to listen to the other recent KWN interviews which included Art Cashin, Michael Pento, MEP Nigel Farage, Michael Belkin, James Dines, William Kaye, John Embry, Jean-Marie Eveillard and Rick Rule by CLICKING HERE.

Eric King

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© 2013 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.

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