Gold’s Dot Plot
John Hathaway, manager of the Tocqueville Gold Fund (TGLDX) writes in his Q1 investor letter that the price of gold may be offering a clear signal that the Federal Reserve’s "dot plot" - the interest rate levels projected by the members of the Fed Open Market Committee after each meeting - "is due for an overhaul."
Tocqueville Gold Strategy Fourth Quarter 2017
John Hathaway, manager of the Tocqueville Gold Fund (TGLDX) writes in his Q4 investor letter that “cryptocurrencies attempt to mimic one of the key attributes of gold: a liquid real asset with no counterparty risk. We view cryptocurrencies as contributors, and possibly as accelerants, to the long-term undermining of all paper currencies. We see them as allies of gold and threats to fiat currency, not as an existential threat to the metal, as they have been so frequently portrayed.”
Tocqueville's Hathaway on Gold: The Fed is ‘Caught in a lie’
We suspect that the Fed has already lost substantial credibility, but that investors prefer to look the other way as long as financial-asset values remain intact. It is, in our opinion, an “everybody knows the dice are loaded” situation that could portend an even sharper, impossible-to-escape downdraft once confidence is dislodged.