[Zdmlscid]

With gold and silver consolidating recent gains, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. When asked about the incredible physical demand or gold & silver around the world, Hathaway stated, “That’s just another straw in the wind. The fact that physical demand has held up as well as it has is very encouraging and it tells you the Wall Street guys who trade on every little news item are really almost out to lunch on this thing.”“Basically what’s happening is there is huge demand at grassroots levels for owning gold because nobody trusts banks and nobody trusts government policies. Some may be searching for a headline to get the gold market moving, but the people who are buying it for their own safety and protection don’t need that to buy.



In my opinion we are definitely in the end game for the dollar as we know it. I’ve said it any number of times, we are past the point of no return for the dollar as a reserve currency. I don’t exactly how this will unfold, but any of the outcomes involve a higher gold price.



Sentiment (on gold & silver) recently was down to unbelievably low levels along with the COT. So everything was indicative that we had a significant bottom....



Continue reading the John Hathaway interview below...






















“I still think we need some time and maybe a retest or two to see whether that’s the case, but I feel like we’re establishing a base for higher highs either later this year or next year.



Right now I think gold has to do something, the ball is in gold’s court to reestablish some momentum which it’s trying to do. Once that happens, I think silver can take off. The move will probably have something to do with Europe and it looks like they are headed towards some sort of papering over of the mess, substituting sovereign credit for bank credit. You never know what some news item will be that will move the market in gold, but it will probably have something to do with that.



The price the Europeans are going to pay is debasing the credit of the European central bank and of the stronger states, Germany and France. At the same time you are going to see a big recapitalization of the banks in Europe or maybe they paper it over by buying bad sovereign debt of some of the peripheral countries at an above market price.



But somewhere those bad loans are going to be carried in the system. As the market senses that, the credibility of the euro will remain in doubt and I think at the margin you are going to see money flowing into gold. It’s in the trillions to recapitalize the banks.”

http://kingworldnews.com/kingworldne...US_Dollar.html

[DoctoNilsonDen]

What goes up must come down. The real polar shift is and has been undertow.