John Hathaway

EUROPE:  “Europe is going to print the euro and we are going to print the dollar.  We had a bank go down today and France is making contingency plans for a couple of more banks to fail.  This is contagion and this will certainly give new life to gold.  I think that’s why the gold market has started to come back from this correction.”

“Bernake has painted himself into a corner because he says he doesn’t want to do it (print money), but if there is further weakness in the market, I mean any number of things could trigger it.  Bernanke is trying to get Congress to do some work on the fiscal side, but if I were advising him I would say, ‘Don’t hold your breath.’”

MINERS:  “Before we had this swoon in September, I wrote an article saying that these valuations in gold stocks were a gift to anybody who had missed the bull market in gold.  This swoon that we’ve had in September, as long as we can believe that gold belongs at least at the $1,500 to $1,600 level, has made this an even greater gift than what we had seen before.  So I feel good that the gold stocks have stabilized and that they are starting to show real signs of life.”

SILVER:  “Just based on my own gut instincts, sentiment is on the frightened side.  The market vane readings (for silver) are down in the 50s (for bullish sentiment), that’s about as low as they have been in many years.  So that’s very positive.”

GOLD:  “I don’t think the gold trade is crowded, I don’t think it ever has been crowded (during this bull market).  It can get popular from time to time, like anything, but popular is one thing, crowded is a totally different thing.  Popular means it’s on the front pages and lots of people are talking about it, but crowded is like what we saw with housing or dotcoms and we are nowhere near that and never have been frankly.”

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