Negative real interest rates are bullion's key driver, John Hathaway says in new investor letter
* Expectations of gold bullion
: Tocqueville expects to see new highs the $US gold
spot price in the next twelve months (euro gold is already at record highs).
* Fundamental drivers of the gold
price: Negative real rates are key and the source of dissatisfaction, resulting to drive capital away in search for alternatives.
* Expectations of gold
shares: Precious metals
stocks will rally strongly once the metal breaks through the previous peak of around $1,920 and stays above that level. That kind of environment will create a more favorable perception towards gold
and the ongoing bull market, which should translate in "outsized relative performance for the mining shares."Read Article