Hathaway - Banks Scrambling To Find Metal To Cover Shorts

"With tremendous chaos taking place around the globe and incredible volatility in the gold, silver, and oil markets, today one of the greats in the gold world told King World News that the bullion banks are now scrambling to find metal in order to cover their shorts.  John Hathaway of Tocqueville Asset Management also said that many bullion banks’ balance sheets may be in great peril if gold and silver prices begin a massive surge.

Hathaway:  “It’s so hard to know in the short-term where the price of gold is headed, but it just seems to me that this is all a process of bottoming.  When you look at the bigger picture, you’ve got an inverse relationship between financial assets and gold.  I see the market is at record highs but underneath that you see technical deterioration.  You also see the U.S. Dollar Index moving higher and this is pushing more funds into stocks because of index buyers and capital flight from Europe and Japan.

And I think the opposite of that trade is for gold to be under pressure.  But we are reaching an inflection point where those trends will reverse and investors will start to lose confidence in financial assets, the Fed, and central banks in general...."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/12/2_Hathaway_-_Banks_Scrambling_To_Find_Metal_To_Cover_Shorts.html