John Hathaway - Desperate Fed to Provide Unlimited Liquidity

With investors wondering where the next major move is for gold and silver, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. Many investors are on edge, waiting for a resolution to the European problem. Hathaway had this to say about what central planners face today, “Oh, it’s terrible, it’s really terrible. Then answer to all of these issues, in terms of what they are proposing, is austerity. Well that’s fine if you are a technocrat like the new head of Greece or the new head of the European Central Bank or the new guy in Italy. I mean these guys are all technocrats.”

John Hathaway continues:

“But I think they’ve got six months before people start to get very restive with their medicine of tightening government spending, cutting back on entitlements and all that kind of thing. I think if you want to have a bet that they don’t have as much time as they need, you should have some gold.

What I expect (out of the European mess) is something on the order of a plan without a lot of details. They are talking about more of a fiscal union, stiff penalties, you know all of that has been tried in the past without a whole lot of success.

But it may sound good and that’s probably why the commercials are long (the euro) for the trade. At the end of the day I think it’s a bunch of fig leaves and then they will try to hammer out details in the coming months, that’s where the difficulty is going to be.

I think gold is waiting for something like that to see just exactly how this plays out. But once Merkel and Sarkozy put on the table whatever they are going to put on the table, then the way for gold is clear to move higher....

Read the full article here.

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