Dennis Gartman Flip Flopping On Gold and U.S. Dollar
Dennis Gartman came out today via a Street.com article today stating he has been bullish on gold in EUROs and other foreign currencies since October of 2009, not bullish in gold held in U.S. Dollars.
TheStreet: Where do you stand now [on gold]?
Gartman: Well, since basically October of last year I've been bullish on the gold market, [but] not in dollar terms. I've been bullish of the gold market in euro terms, bullish of gold in sterling terms, bullish of gold in yen terms, bullish of gold in Swiss franc terms. I'm not particularly bullish [on] the gold market in dollar terms and that's actually been the wise way to go ... Gold in dollar terms is ... $150 below where it was on its high the first week of December, but in euro terms, Swiss franc, yen terms it's at new highs ... I've been that way since October. I'm not changing now.
But is this true? Has Gartman been bullish on gold in EUROs and positive on the U.S. Dollar all this time? The answer is NO.
For those who are interested, the rest of the article continues here: http://fedupbook.com/blog/gold/dennis-gartman-flip-flopping-...
all I say is, who cares.. I
all I say is, who cares.. I was watching the idiots on cnbc tell us that the dollsr is getting strong, that the dollar will again be the safe haven.. BS... the dollar is not strenghtening.. it goes from a low of .70 to .81 and everyone is like.. wow look at that dollar! well go back 10 years and look at the chart.. where was the dollar comapred to gold and to the euro. The dollar is NO safehaven..
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I understand your point....
From a short term perspective, and for traders, it does matter. From a long term, buy and hold (the physical), it doesn't matter as the U.S. Dollar will resume it's downward trend.
Doesn't mean the Elliott Wave Folks won't be correct in the Index climbing above 90 in the meantime (barring any external influences).
Dennis Gartman jumped to conclusions in his analysis, and I pointed out his flip flopping. One would be confused following his advice from a trader perspective (which is all he is, as he's no economist).
Unlike Gartman, I analyzed the Eurozone economy and came to my conclusions and stuck with them despite the rhetoric that came out of the Obama administration that caused Gartman to change his tune in January.
Investing in gold and holding physical gold are two separate issues as you know. The dollar has been strengthening from a short term perspective, but the bigger picture shows the secular trend is intact.
What would happen to the holders of physical gold if the Elliot Wave folks are right? That's what I try to address. I believe one has to be aware of what's going on unless they have, like you, been educated as to the reasoning as to why they are in gold.
Many people will look at the stock market and think everything is hunky dory (forthcoming article). They'll listen to the so called experts on CNBC, or government economists declaring the "worst is over" and believe them.
Nothing could be further from the truth.
Doesn't mean the DOW can't climb to 12,000 from here, despite valuations. And it doesn't mean gold can't fall to $700 from here. They'll always try and knock you off the bull...
In this sense, your statement is apropos...."who cares?"
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