Hathaway – Fed to Print More Money & Gold to Hit New Highs
April 20, 2012
Four decade veteran John Hathaway, told King World News that he has never seen these types of extraordinary opportunities in the market. The prolific manager of the Tocqueville Gold Fund said the gold market is very close to a bottom and it will soon turn and head to new all-time highs. Here are the critical observations by one of the most extraordinary 5-star rated Morningstar fund managers: “What I think we’ve been through here is a lengthy correction from the peak of last August, when gold rose to above $1,900 an ounce. We’ve had a couple of debt ceiling increases since then. The fundamental issues continue to be what they were last August, it’s just that they are off the front pages.”
John Hathaway continues:
“So, we are in this lengthy correction and most of the things I look at suggest we are near a bottom. I don’t see a huge amount of downside risk. To me this is an excellent opportunity to put money to work in the sector, particularly in the gold stocks which are as cheap as I’ve ever seen them.
We’re seeing values that I don’t think we’ve seen, I’ve never seen since I’ve been doing this. Newmont is trading at roughly five times cash flow. It’s trading at about eight times earnings, with a 3% dividend yield.
If you’re a value investor and you don’t even have a point of view on monetary debasement, you would have to say let’s take a look at Newmont because it looks cheap….