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Tocqueville gold fund's Hathaway earns a probationary tin-foil hat
9a ET Wednesday, July 3, 2013
Dear Friend of GATA and Gold:
Tocqueville gold fund manager John Hathaway's new investor letter attributes the recent fall in the gold price to a bear raid by investment banks and hedge funds doing naked shorting.
"Gold was rarely, if ever, delivered to a buyer," Hathaway writes. "Trades were settled in cash. The notional amounts of the transactions on many days exceeded annual mine production, absurd on the face of it. The motive was most likely to break the gold price for profit. The result is that short positions of these traders are higher than at the bottom in 2008, after which gold rallied 167 percent and mining shares 256 percent (basis XAU)."
Hathaway also acknowledges gold's function as insurance against the failure of the policies of central banks and speculates that the Federal Reserve can't return the German Bundesbank's gold because the Fed has rehypothecated it into oblivion.
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Of course Hathaway still can't quite formally link central bank policy to gold price suppression, despite all the documentation helpfully compiled here --
http://www.gata.org/taxonomy/term/21
-- but insofar as he now maintains that certain entities act in concert to suppress the gold price, he may start to be considered a "conspiracy theorist" and thereby has earned a probationary tin-foil hat. If only he would try motivating the gold mining companies in which his fund invests to contest the suppression of the price of their product, as a matter of their duty to their shareholders. But then maybe that would raise the question of his own fund's duty to its shareholders, who include your secretary/treasurer.
With a little help from gold mining companies and gold investment funds like Tocqueville, there would be plenty of opportunity for action:
http://www.gata.org/node/12731
Besides, advocating gold ownership, individual liberty, limited government, and the brotherhood of man is not and will never be the formula for respectability. One can't be in gold as a matter of principle and be respectable too.
Hathaway's new investor letter is posted at Tocqueville's Internet site here:
http://tocqueville.com/insights/tocqueville-gold-investor-letter-2Q13
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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