Physical Gold Market In Disconnect As Premiums Hit Record
June 26, 2013
With gold and silver getting smashed, today John Hathaway told King World News that premiums for gold have now hit all-time record levels as the physical market has completely disconnected from the paper market in gold. Hathaway also spoke about the gold and silver smash and provided an incredible chart as well. Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating.
Eric King: “John, we have this smash continuing in gold and silver, your thoughts here?”
Hathaway: “Right now it’s just piling on by momentum players. Remember, it’s also the end of the quarter so this is window dressing in reverse. People want to show big profits in short positions.
All along this has just been naked shorting by the usual suspects — trading desks, the big banks, and hedge funds. There is very little physical gold that’s being sold. The mechanics (of shorting) are basically you post margin, and you short X amount of gold….