Gold Price Could Rise on Volume Disparity from Paper Money

Source: Roger Nusbaum, Seeking Alpha  (10/1/07)

John Hathaway, manager of the Tocqueville Gold Fund, said: "the disparity between the amount of paper that has been created since 1980 and the amount of gold that has been produced since then is just enormous." So we have had a much larger increase in the supply of money compared to the supply of gold.


John Hathaway, the manager of the Tocqueville Gold Fund (TGLDX) had a take in Barron's on why gold can move higher that I don't recall hearing before.

He said: "the disparity between the amount of paper that has been created since 1980 and the amount of gold that has been produced since then is just enormous." So we have had a much larger increase in the supply of money compared to the supply of gold. For what it's worth, Hathaway thinks gold can go quite a bit higher.

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