On the heels of continued uncertainty in the gold and silver markets, one of the greats in the business, John Hathaway, says that we have now entered a momentous period for gold.
King World News note: The information below is part of an extremely powerful piece that John Hathaway recently released.
By John Hathaway, Tocqueville Gold Fund
October 11 (King World News) – The precious metals markets have clearly turned the corner … following the extensive and painful correction from August 2011 to year-end 2015. … Despite the impressive year-to-date advance, we believe this cycle is still in its infancy, and that it promises to be extremely powerful…
We believe that fiscal and monetary policy in all developed countries has reached a dead end, and is all but bankrupt. More important, we maintain that the persistent application of and adherence to idiotic/unproductive public policies have substantially ramped up systemic risk. Investors are beginning to look to gold, fearing that the purchasing power of all paper currency – including the US dollar – is imperiled. The three-decade low in the pound sterling following the Brexit vote is a warning that the practice of central-bank-managed currency exchange rates is unravelling.
… In our view, interest rates will rise, and cannot be normalized without another financial crisis that would mirror or exceed the intensity of the 2008 global credit meltdown. Super-easy money has, in our opinion, reached the end of the road as a credible palliative for economic underperformance. What comes next is anybody’s guess, but under almost any imaginable scenario, gold benefits.
To pinpoint future reasons for a reversal of sentiment is analogous to guessing which snowflake will trigger the avalanche. What should be obvious to the residents in the valley below is the buildup of the cornice (systemic risk). As Lenin said: