It’s very tempting to say “I told you so” but … well, I guess I did!
Tocqueville Gold Fund’s John Hathaway says the rally underway in precious metals is due to a short squeeze of 100:1 levered paper gold traders being squeezed for actual physical delivery of the metals when supplies are tight.
Hathaway, who runs roughly $10 billion in investor funds, also mentions this morning’s call by JP Morgan Chase analysts John Bridges and Anant Inani to ‘Buy Gold’ on short term valuation and seasonal factors….
“Seasonal factors” like maybe a new ice age? JP Morgan is trying very hard to stay credible and in control of the psychology in the face of an unstoppable tidal wave. This has been very long in coming, only the mighty wurlitzer kept it at bay.
This is not good news. But it’s unavoidable, the die was cast a century ago. Stock up on essentials people, it’s going to be a long season, especially when we get to meet the real government. And look out for bible-thumping constitutionalist US veteran islamic jihadist terrorists in GSA uniforms! I can just see the opportunities in stand-up comedy. The satirists are going to be in fat city. If they aren’t taken out by swat teams before they get to the punch line.