Dear CIGAs,

John Hathaway has an interesting view concerning hedge funds that are short junior producers and exploration companies.

The following is courtesy of Eric King of King World News. Click here to view the full interview…

Hathaway – Hedge Funds Short Miners are Going to Get Roasted
Eric King

With gold and silver breaking out strongly to the upside, today King World News interviewed John Hathaway, Director and General Partner of Tocqueville Asset Management. When asked about what transpired with gold and silver taking off yesterday John remarked, “I said to myself this is a really big day because to me it was decisive action. I looked around for some headlines and didn’t see much, and to me it’s always best when you don’t have a knee jerk reaction to some news headline that would explain gold’s move. I think a lot of people are still mystified and basically out of the game.”

When asked if this breakout satisfied him Hathaway replied, “Yeah, because I guess we closed somewhere north of $1,450 and it was up about $22 today. I mean it looks to me like there were people on the sidelines waiting for it to come in to buy it on a pullback or maybe to cover shorts on a pullback. To me this is great action.

It was more importantly confirmed by what the stocks did. I just see three, four, five percent moves in some of the big cap stocks, not the little ones, and that’s a sign of money coming in either to cover shorts or to initiate positions on a breakout. So yeah, I think all around it was a great day.”

When asked if gold was finally going to have a massive upside move Hathaway stated, “The last time you and I talked which was maybe two weeks ago, I thought that if gold could show that it could gain footing around this level and then stay above $1,440, that would be a game changer and we could see a very quick move of a couple hundred points (dollars) maybe to $1,600 before anybody knows what’s going on, and only time will tell but that’s what it feels like to me.”

When asked if the hedge funds who have been trading long gold but short the mining shares were going to cause the shares to rocket as those hedge funds were forced to cover the short positions Hathaway replied, “In the short-term I think you could see that. Gold shares have been hesitant, acting as if gold didn’t belong at $1,440 and now that gold seems to want to stay there I think people have to revise their expectations for the gold stocks.

Click here to read the rest of the article at King World News…