This page has been archived and commenting is disabled.

Gartman Top-Ticks Gold Again: Precious Metal Slides Since Gartman's Latest Bullish Flip-Flop

Tyler Durden's picture




 

This morning, like many other mornings in the last few months, precious metals prices are being pummeled lower in a vertical dumpfest (for no apparent sudden reason other than its opening time). What is ironic about this apparent lack of demand is that around the world, demand is extreme - and is most clearly evident in India, where thanks to government intervention, physical premiums push to new record highs yet do nothing to detract from Indians buying demand (as Reuters reports supplies of the precious metal disappear). Of course, the real reason why gold and silver prices have dropped since 10/28 is that none other than "the world renowned Gartman" went long again...

 

 

Via Michael Krieger of Liberty Blitzkrieg blog,

I first reported on record high gold premiums in India a couple of weeks ago. Since then, the story has become even more interesting as Reuters reports that gold supplies have completely dried up just ahead of major gold buying festivals and despite continued record premiums. While it is clear that Indians are finding a way to buy gold anyway via black markets, this is still a very interesting story to keep an eye on.

More from Reuters:

India has imposed several restrictions on imports of gold, the biggest non-essential import item, to curb a record trade deficit. Gold imports in September fell to 7 tonnes from 162 tonnes in May.

 

Of course, if additional demand wasn’t being met via black markets the price of gold would be far lower than it is.

 

“Still gold is not available, and they are charging $120-130 (an ounce) of premiums,” said Bachhraj Bamalwa, director with the All India Gems and Jewellery Trade Federation.

 

Most of the demand is being met by recycled gold or through unofficial or illegal supply channels, traders said.

 

“Sales have dropped by 50 percent… and everything is happening according to the wishes of the government,” said Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold House.

I’m sure this will all work out just as the government anticipates…

Full article here.

 

As for the supposed reason for today's plunge:

 

In what has become a neck-to-neck race between the two best contrarian indicators in the world, Goldman's FX antiguru Tom Stolper and, well, nobody's Dennis Gartman, recall that it was October 15 when Gartman infamously told CNBC that "Gold Is Acting Crappy... Looks Weak... Looks Awful." The logical result was a $100 gold price ramp in the few short days that followed. So fast forward two weeks to October 28 when Gartman, again on CNBC, intoned his suddenly bullish stance on gold, telling CNBC " that he was now looking at another trade. " That prompted us to quickly note that logical trade to be made was...

 

And sure enough, after hitting $1360 on the day of Gartman's interview, gold has since tumbled.

Needless to say, we would urge readers to wait for the author of the "world renowned Gartman letter" to start bashing gold again before going all in the yellow metal.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 10/31/2013 - 09:03 | 4108221 Zero Point
Zero Point's picture

Comedy gold.

Thu, 10/31/2013 - 09:17 | 4108256 ihedgemyhedges
ihedgemyhedges's picture

I'd rather watch Dennis Gartman be wrong on gold all day than to have these f'n pop up ads keep taking over my screen on ZH..........I mean, how much Quaker Oats do you people expect me to eat?!?!?!?!?!?

Thu, 10/31/2013 - 09:23 | 4108271 Peter Pan
Peter Pan's picture

When your aeroplane starts to stall you won't give a shit what price you paid for your parachute.

Gold will take of itself and needs no symathy.

Thu, 10/31/2013 - 09:39 | 4108311 Manthong
Manthong's picture

No precious metals slid where I am.. maybe someone dropped some oil on their keyboard or paper printouts, but no metal outside of some bearings, pistons, cam shafts or lifters did any slipping around here.

Thu, 10/31/2013 - 09:56 | 4108363 bania
bania's picture

going from the upper Denis to the lower Gartman

Thu, 10/31/2013 - 10:40 | 4108496 pmbug
pmbug's picture

Whether cause and effect, or just coincidence, I'm sure the folks in Hong Kong and Shanghai thank Mr. Gartman for the GLD's gold that is likely headed their way.

Thu, 10/31/2013 - 13:40 | 4109051 akak
akak's picture

Really, simply fuck Girthman and his ADD-afflicted hourly flip-flopping on gold already.  It is no longer even humorous, much less informative or meaningful. 

He IS, however, representative of the typical juvenilized, ultra-short-term-thinking, dumb-downed, impatient, historically clueless and perspectiveless American.

Thu, 10/31/2013 - 09:25 | 4108275 superflex
superflex's picture

I gave you a red pill because you have the power to do something about it (cough, Chrome w/ Adblock Plus, Mozilla with Adblock, etc, cough).

Quit acting like President Stompyfoot and calling a press conference to something which you have complete power over.

Quaker Oats are good for you, BTW.  Those GMO cereals are da bomb.

Thu, 10/31/2013 - 09:27 | 4108285 fooshorter
fooshorter's picture

<---Zero Hedge loves Quaker oats like a mother fucker

<--Zero Hedge Loves Money 

Thu, 10/31/2013 - 09:49 | 4108341 Rubbish
Rubbish's picture

Can't Eat Windex now can you?

Thu, 10/31/2013 - 09:46 | 4108338 Papasmurf
Papasmurf's picture

These are targeted ads.  You get told to eat oats, I get hot asian wives.  Get kaspersky or an ad-block plug-in to be done with it. 

Thu, 10/31/2013 - 10:21 | 4108460 fredquimby
fredquimby's picture

Seriously? You don't use adblockplus?????

Thu, 10/31/2013 - 13:13 | 4108980 James_Cole
James_Cole's picture

It's funny how much people complain about the pop ups, I've never had a pop up on zh...the power is in your hands folks!

Thu, 10/31/2013 - 09:22 | 4108268 Croesus
Croesus's picture

Tragedy Gold, more like...The tragedy will be for the people who sold, not for the people who have it! 

Hat Tip, TwoShortPlanks: 

http://twoshortplanksunplugged.blogspot.com.au/2013/10/us-gold-treason.html

Hat Tip, FOFOA: 

http://fofoa.blogspot.com/

 

Hat Tip, Myself,(because I can): 

Gold is moving TOWARDS the system, NOT away from it. Understand that "Gold-as-a-solution" is the ONLY outcome...and that the current world is a house of cards...paper, built on paper & priced by paper...

The World of Illusion is in its death throes. 

Because so many depend on its favors, every protection will be afforded to it, but it won't change the outcome. I will buried with mine, right next to Arch Stanton.  

 

Thu, 10/31/2013 - 09:05 | 4108225 Sufiy
Sufiy's picture


Jim Sinclair: Debt, US Dollar and Gold

 Cyprus bail-in was the grand experiment of money confiscation and coincided with the great smash of Gold. A lot of people have forgotten about this blue print for action and Gold manipulation has helped to disguise the real connections. Jim Sinclair reminds us about all these interconnections and the main factors in the chain of Debt, US Dollar and Gold. 

http://sufiy.blogspot.co.uk/2013/10/jim-sinclair-debt-us-dollar-and-gold.html# 

 

Market Price Discovery And The New Normal: No Taper And US Dollar Goes Up With Gold Being Smashed Down Again 

Thu, 10/31/2013 - 09:06 | 4108230 Lewshine
Lewshine's picture

"In Yen and Euro TERMS"...Which will mean he was actually short, you silly.

Thu, 10/31/2013 - 09:06 | 4108232 Quinvarius
Quinvarius's picture

It appears Hong Kong is being assailed by gold buying Indians:

http://www.youtube.com/watch?v=-CMsjaHrFBs

Thu, 10/31/2013 - 09:06 | 4108235 Dr. Engali
Dr. Engali's picture

Good Lord that guy is a retard. It amazes me how CNBS constantly trots out these blind squirrels known as "experts" to ofer their 1/2 a cent.

Thu, 10/31/2013 - 09:20 | 4108263 Urban Redneck
Urban Redneck's picture

He's just (probably unwittingly) doing the Fed's bidding. Every muppet that follows the lead lemming's advice into the slaughter can be parted from their gold, and discouraged from returning to the gold well, leaving more for them to use in order to prop up the faith in their fiat just a little longer.

Thu, 10/31/2013 - 09:22 | 4108267 Parisnights
Parisnights's picture

Silver Bitchez!

 

Thu, 10/31/2013 - 09:07 | 4108236 unwashedmass
unwashedmass's picture

 

we should be very happy the CTFC is doing such a good job making sure that we are "protected" from this gold hysteria sweeping the world, and sweeping our country's gold and silver out of our way. don't want our peasantry caught up in such nonsense......they might not fork it over to help JPM in its time of need. 

and we all know that we must band together to protect JPM. 

no matter what it takes. 

even if it takes the country and the economy down. 

Thu, 10/31/2013 - 09:10 | 4108239 XAU XAG
XAU XAG's picture

In years from now the todays daily, weekly, monthly girations will look like a pimple on a pigs behind

Thu, 10/31/2013 - 09:10 | 4108240 orangegeek
orangegeek's picture

Gold is likely on its way to 1425, perhaps 1500 before turning down again.

 

http://bullandbearmash.com/chart/spot-gold-falls-marginally-consolidatio...

 

Expect lots of swings and sideways movement as the trend increments upward - corrective move

Thu, 10/31/2013 - 09:10 | 4108241 FieldingMellish
FieldingMellish's picture

Bart remains frustrated.

Thu, 10/31/2013 - 09:17 | 4108258 XAU XAG
XAU XAG's picture

@FieldingMellish

He should try using the other hand in a boxing glove..........that should work!

Thu, 10/31/2013 - 09:11 | 4108247 sudzee
sudzee's picture

Paper and digital gold are still about 1300.00 overpriced.

Thu, 10/31/2013 - 09:11 | 4108248 Quinvarius
Quinvarius's picture

I like how Gartman and his followers put up juicy stops to blow.  Gold is a stop hunting fiend.

Thu, 10/31/2013 - 09:20 | 4108265 debtor of last ...
debtor of last resort's picture

Demand for silver bullion very high, value ratio almost 1:1 with gold in 2013.

http://srsroccoreport.com/important-charts-on-gold-silver-eagle-sales/im...

Thu, 10/31/2013 - 09:23 | 4108272 GrinandBearit
GrinandBearit's picture

Gartman is a the best fade ever!

And I thought Cramer was the best... wrong. 

Thu, 10/31/2013 - 09:28 | 4108281 Sonic the porcupine
Sonic the porcupine's picture

Of course, if additional demand wasn’t being met via black markets the price of gold would be far lower than it is.

Isn't that sentence backwards? If the black market is increasing supply, in the absense of black markets, wouldn't the price of gold be far HIGHER than it is? Or am I thinking about it ass-backwards since obviously the rules of supply and demand don't apply to gold.

Thu, 10/31/2013 - 10:04 | 4108389 FieldingMellish
FieldingMellish's picture

Sarcasm can be too subtle some times.

Thu, 10/31/2013 - 09:28 | 4108287 Peter Pan
Peter Pan's picture

If you have to pay $1327 for paper gold, what is the real thing worth?

Thu, 10/31/2013 - 09:51 | 4108346 LawsofPhysics
LawsofPhysics's picture

Implying any "price" implies that your market allows for price discovery.  This is not the case, all you need to know;  when fruad is the status quo, possession is the law.

Thu, 10/31/2013 - 09:30 | 4108288 new game
new game's picture

but over on the other side of the world a new exchange has evolved.

physical only. real fiat for physical gold.

end of games is soon going to arrive.

get physical gold b/4 cost in fiat moves up over 1500.

plain and simple.

tick toc, can feel an urgency not felt a year ago.

just sayin (and doin)...

Thu, 10/31/2013 - 09:43 | 4108323 Sonic the porcupine
Sonic the porcupine's picture

"real fiat" LOLZ!

Thu, 10/31/2013 - 09:34 | 4108296 philosophers bone
philosophers bone's picture

If you think gold is a "trade", you don't understand it.  Clearly Gartman has proven that he does not understand it.  My question is when does an "expert" lose sufficient credibility such that they are no longer an "expert"?

Thu, 10/31/2013 - 09:36 | 4108303 Diablo
Diablo's picture

>for no apparent sudden reason other than its opening time

i guess you conveniently missed the story that russia is selling gold, eh?

thats ok, i dont expect ZH to report facts anymore...just the trolls buying MOOOOAAARRRR and grumbling about conspiracy theories whenever it goes lower. to da moon, bitchez.

LOL

 

 

 

 

Thu, 10/31/2013 - 11:10 | 4108512 socalbeach
socalbeach's picture

Per this article Russia sold 0.4 tons in Sept after having purchased 12.7 in August and 6.3 in July.  Russia has purchased 57.4 tons YTD counting Sept's tiny sale.  Scroll down to see chart.

Central Bank Gold Buying Slows, As Russia Sells Precious Metal In September: IMF Data

October 29 2013

Thu, 10/31/2013 - 10:04 | 4108388 MFLTucson
MFLTucson's picture

Isn’t it fun to watch manipulation at its finest?  Dollar ready to go over the cliff so back come the American gangsters to rescue it and of course the flip side was to lower Gold and silver, 85 Billion in paper is not enough confetti, we need more to juice this charade one last time before the final act comes to fruition.  The US is no longer a country to make investments in, the system is a rigged game for the bankers and Shalom and company.  This will end badly for all of us and this pile of shit will blame the Chinese or someone other than the obvious.  Obama and Bernanke are the worst combination American could have imagined at a time of such problems.  It is disheartening to read all the anti American posts but this is what happens when the gangsters take over and you place an anti American fraud at the helm.  Hopefully, the American people will wake shortly and remove all the trash in DC and get this Jewish banking cartel the fuck out of this country.  They deserve death and prison for the damage they did to America and instead the meda has displayed them as above the law and the mega rich of our country.  Disgraceful and disgusting but the excat behavior we should expect from people like Chris Matthews and his liberal ignorant friends.

Thu, 10/31/2013 - 10:30 | 4108480 ToNYC
ToNYC's picture

Long of Gold in Yen terms like Mrs. Watanabe made Dennis' carry trade radioactive, but tone-deaf as well.

Thu, 10/31/2013 - 13:44 | 4109092 akak
akak's picture

 

Long of Gold in Yen terms

I'm still waiting for Girthman to explain what that doublespeak goobledygook actually means, if anything.

Gold is gold, period.  You either own gold, or you own the yen --- you can't own BOTH at the same time.

Fuck this fat idiot already.

Thu, 10/31/2013 - 20:21 | 4110229 ToNYC
ToNYC's picture

Some guys are Yen-eaters, you go Dennis.

Wed, 11/06/2013 - 12:48 | 4127263 nagan
nagan's picture

He is probably the biggest contrarian indicator for Gold..in 2008 when gold was below $1000 Gartman said sell gold...  

Yesterday he wrote in his blog saying you should sell crude oil "WTI crude oil could work its way down to $85 per barrel. I have a sneaking suspicion we're going to go down and take a look and see how much $85 crude oil there is out there." http://dennisgartman.blogspot.com

I wouldnt be surprised to see crude oil rallying after a few weeks. Haha

Wed, 11/06/2013 - 12:48 | 4127267 nagan
nagan's picture

based on his track record, i guess now oil is near a bottom, including solar.. and Gold will go down short term.

Do NOT follow this link or you will be banned from the site!