Hathaway: “I’m watching the Ukraine situation. Anybody who is interested in gold has to be thinking about that. But I’m also paying attention to these proliferating legal actions against those involved in the London fix….
“These legal actions will finally demystify the inner workings of the London gold market. Ukraine is obviously the headline grabber right now and for good reason, but, to me, one of the key longer term catalysts for gold is to shed daylight on the connection between the physical market and the synthetic market for gold.
I think that process of shedding daylight, which will be aided by the legal process as well as regulatory scrutiny from FCA and BaFin, will be very constructive as well. I think it will make it much harder for the insiders in that game to do what they are doing, which in my opinion is just using gold as a funding mechanism for a carry trade.”
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