Sprott/John Hathaway/10-7-2022
“Dollar ‘strength’ is a mirage. It is the reverse image of all other paper currencies’ weaknesses. In our view, the dollar ‘wrecking ball’ may well represent the last stand for paper currencies in general, all of which are the ever-increasing issuance of fiscal decay.”
USAGOLD note: Sprott’s John Hathaway, an analyst with decades of gold market experience, counsels patience with gold’s current price action. He believes that, like the Bank of England, the Fed will be forced to abort its anti-inflation mission by “exigent circumstances.” When it does, he says, Investors will return to gold as a safe haven asset. “The historical precedent,” he says, “is from year-end 1968 (DJII 903.11) to year-end 1981 (DJII 932.95). During the same stretch, gold rose from $39.11 to $460/oz.”
