Who’s in charge of doling out such titles anyway? Is there a chance, perhaps, someone in the media could title me “The Blogging Emperor” — enabling me to make wide sweeping proclamations about the future of online media?
The craven vultures from CNBC are out with a fresh story this evening, discussing “The Commodity King’s” stance on gold and how it’s heading ‘demonstrably’ higher.
“A year from now, gold will be demonstrably higher than it is right now,” The Gartman Letter’s founder told “Futures Now” in a recent interview. “I would certainly think we could see $1400 [an ounce] in dollar terms.”
“This is a correction but let’s understand the last rally that we had took off from $1200 to $1370. The fact that we’ve fallen back below $1300 I think is relatively inconsequential,” he added.
“I am not a gold bug. I don’t believe the world is going to come to an end. I don’t think you own gold because you think governments are going to be collapsing around the world,” he said.
His reason to own gold: Central banks and easy money.
“The monetary authorities are all still remaining expansionary,” noted Gartman, given that easy central bank policy tends to undermine major currencies like the dollar and euro. “In that instance, the one currency that will probably do the best of all is gold.”
He doesn’t believe the Federal Reserve’s intention to start reducing its $4.5 trillion balance sheet in October will be a headwind for gold. The unwinding of the Fed’s crisis-era policy “is going to take five or six years. This is not something that will occur overnight,” he said.
I’m so glad that I sold the last of my gold position on Friday. There isn’t any reason to be on the same side of a Dennis Gartman trade, not now, not ever. This whole Commodity King business is awfully tiresome. It reminds me of boiler room tactics, where some brokers would declare themselves to be child prodigies in investing — born geniuses, sent to a phone bank inside of a third rate firm to save the average investor from the dreadful underperformance of white shoe firms.
Even still, a 7% move from current levels isn’t exactly something to beat off to. The idea that gold is set to trade ‘demonstrably’ higher because the Fed is set to tighten their balance sheet by $4.5 trillion over 5 years is nonsensical, inane, and tragically stupid.
If you enjoy the content at iBankCoin, please follow us on Twitter
Reminds me of the time Jim Awad gave a stock recommendation on air which soon after tanked. A few months later, my father called into CNBC during an Awad segment and told him that he invested his life savings into his recommendation and asked what he should do now that it was down 90%. My father hadn’t bought the stock but remembered the recommendation and wanted to make him squirm.
Gold will trade much higher – once reality hits the market and we finally get some god damned volatility (since when do politics not affect the market) gold is one of my favorite trades and a must have in every diversified portfolio (for now) as the lemmings push valuations
The ratio of paper metal to actual bullion in the COMEX makes gold unattractive. Until you can circumvent their printing presses it is a losing battle. Banks sell paper back and forth to each other whenever the price starts to go up, and physical delivery isn’t required. All contracts can be settled in cash. And…The Inverse Gartman trade is 90% accurate.
of all the reasons to be bearish gold…yours is the most nonsensical. I mean, I respect your opinion, but think really hard “Is this at all rational?”. Cheers.
I own it too, but I have grown tired of the price manipulation. I buy it when it drops, and never sell. I’m not saying you shouldn’t buy it, I am buying it while the price is low.
An once of gold will always be an once of gold that will always buy dollars. However, when phyz gold goes into permanent backwardation, no amount of dollars, even an infinite number of dollars, will buy even a smidgen of gold. I could see somebody trading gold for paper dollars if those paper dollars were to be used for heating, like burning it in a wood stove, but definitely not digital dollars. How soon will this happen you ask? Sooner than you think.
Jesus H Christ. The piece really wasn’t about gold but how CNBC perpetuates the lie that there are in fact people who can tell the future. Dennis Gartmen obviously is at the point in his life where he drinks himself to sleep every night, and is happy to play the patsy to CNBC’s desperate need to gain relevancy. Pay attention.
How many ‘onces’ of gold to get you an education you misspelling anti-semitic mom’s basement dweller.
Your grammar could use some help, idiot