Thursday, August 1, 2013

Hathaway - Plunging COMEX Metal Stocks & BoE Gold Sales

"With gold and silver getting consolidating, today John Hathaway spoke with King World News about what is happening in the war on gold and silver.  Hathaway also spoke about the gold and silver shares and what is taking place in the industry.  Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating. 
 
Hathaway:  “To me the biggest story right now is the disconnect between paper gold and physical
gold.  I see a lot of good commentary covering this on King World News.  I just don’t know how this plays out, but it seems to me that if the banks were involved in manipulating electricity, oil, and LIBOR, why would gold be exempt from such manipulation?
 
That’s why I’m so interested in the fact that COMEX warehouse stocks have dropped to extremely low levels....
 
“We also see that the Bank of England may have disposed of 1,300 tons during the break in the gold price.  So there are many, many clues as to a big short position in gold, and obviously intervention by the banks and hedge funds running with (central banks) on that trade. 
 
But part of the reason why gold will trade higher is this mismatch between the shorts, gold that has been leased, and physical demand, which we know continues to be very strong.  I’m just waiting for the next macro event that will make everybody want to own gold again, instead of being comfortable on the short side..."
 
 

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