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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