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Gold In Gartman Terms? There's An ETF For That

Tyler Durden's picture





 

Dennis Gartman, already humiliated beyond any hope of reputation salvage in the media, appears to be refocusing his keen talents and acute sense of extrapolating instantaneous market momentum 1 millisecond into the future, to a renewed direct exposure in the capital markets. And while hoping that market junkies have forgotten the epic disaster that was his last foray into ETF-land with ONN and OFF, Gartman today announced that he is now launching his signature shtick as a brand new ETF: gold... in non-dollar terms.

As Gartman himself announced today:

We are excited to announce the launch of a series of exchange?traded funds sponsored by AdvisorShares, the Gartman Gold/Yen (GYEN), Gartman Gold/Euro (GEUR), and Gartman Gold/British Pound (GGBP) ETFs. Treesdale Partners, LLC, a New York based registered investment advisors, will serve as the portfolio manager for the three ETFs. Treesdale will also sub?advise AdvisorShares International Gold ETF (GLDE), an ETF with a balanced allocation to the three previously mentioned ETFs as well as additional exposure to gold in US dollars.

 

These funds will provide investors with an opportunity to buy gold financed in foreign currencies.

 

GYEN $12.80 Gold in Yen terms
GEUR $12.80 Gold in EUR terms
GGBP $12.80 Gold in Sterling terms
GLDE $12.80 Gold; 25% each in terms of US$;

Sadly missing: Gold in Dong terms.

And the press release from AdvisorShares, which must have been cowering in a ball of shame when it hint sent:

AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), announced today the launch of four industry-first ETFs – providing gold exposure in different currency terms through a 40 Act structure – which will begin trading on Wednesday, February 12, 2014:

 

These ETFs are sub-advised by Treesdale Partners, a New York, New York-based registered investment advisor with an established expertise in managing fixed income-based and currency/commodity-based alternative investment products. Additionally, Dennis Gartman, editor and publisher of The Gartman Letter, will lend his institutional insight on educating advisors and investors about the AdvisorShares gold ETF suite as well as the merits of trading commodities in different currency terms during various market periods.

The investment objectives of the AdvisorShares Gartman Gold ETFs seek to provide positive returns by utilizing their respective currencies to invest its assets in the gold market. In pursuing the GEUR, GGBP and GYEN investment strategies, Treesdale will provide access to a popular investment approach from Mr. Gartman: using different currencies to fund a gold position. GEUR utilizes the European Union's Euro; GGBP utilizes the British Pound; GYEN utilizes the Japanese Yen. The foreign currencies are obtained through the sale of either exchange-traded currency futures or "over the counter" foreign exchange forward contracts. The funds alternate currency exposure seeks to neutralize U.S. dollar risk, and assesses the dollar and corresponding foreign currency yield curve, determining the most positive net effect to purchase gold in different currency terms.

The investment objective of the AdvisorShares International Gold ETF (GLDE) seeks to provide positive absolute returns by investing in exchange-traded products (ETPs) that provide diversified exposure to the international gold market. In pursuing the GLDE investment strategy, Treesdale will provide access to currency diversification, rather than using the U.S. dollar exclusively, actively allocating its underlying gold positions to seek consistently attractive valuations. Along with the AdvisorShares Gartman Gold ETFs, GLDE allows access to a highly specialized portfolio manager with liquidity, transparency, and operational and tax efficiency. Uncommonly, the four gold ETFs are not expected be subject to unrelated business taxable income (UBTI) and schedule K-1s, which are typically present in commodity-linked investments.

"Dennis Gartman's widely recognized analysis and commentary among leading corporate, financial and trading institutions is well-known, and we believe Treesdale adds another deeply experienced portfolio manager to the AdvisorShares active ETF suite," said Noah Hamman, chief executive officer of AdvisorShares. "We are pleased to partner with their combined expertise in bringing more innovative investment solutions to the active ETF marketplace."

Ade Odunsi, managing director of Treesdale and portfolio manager of GEUR, GGBP, GYEN and GLDE added, "By choice or not, many gold investors today explicitly express that they expect the value of gold to increase relative to the U.S. dollar. As a result, investors are exposed to risk factors that affect the supply and demand for gold, as well as the various factors that might impact the value of the U.S. dollar on international currency markets. With these active ETFs, we believe investors now have unprecedented access to efficiently hold gold in different currency terms to avoid undesired and concentrated exposure to a single currency, such as the U.S. dollar."

"Throughout the course of my career, I've discovered first-hand that a diligent and comprehensive approach to trading and investing can deliver positive returns to a diversified investment portfolio," said Mr. Gartman. "Among those lessons, I've learned that owning different commodities, especially gold, in different currency terms can provide added-value for any investor's alternative allocation."

 


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Wed, 02/12/2014 - 17:32 | Link to Comment Mad Mohel
Mad Mohel's picture

You sick motherfucker!

Wed, 02/12/2014 - 17:35 | Link to Comment Arius
Arius's picture

he is just providing advice ... why dont you take the other side if you feel so certain?

Wed, 02/12/2014 - 17:41 | Link to Comment oddjob
oddjob's picture

Dennis "copper will never trade above $4/lb in my lifetime" Gartman.

Wed, 02/12/2014 - 17:44 | Link to Comment Say What Again
Say What Again's picture

Gartman's favorite comment; "the chart is going from the bottom left to the upper right.  Keep buying"

 

Followed by a close second; "I've been in this business a long time."

Wed, 02/12/2014 - 17:46 | Link to Comment Keyser
Keyser's picture

Could be worse. His tag line could be BOOOYYYAAAAAA!!!!!

 

Wed, 02/12/2014 - 17:55 | Link to Comment James_Cole
James_Cole's picture

In terms of scams out there, at least this one has a semi clever twist to it. 

with the AdvisorShares Gartman Gold ETFs, GLDE allows access to a highly specialized portfolio manager with liquidity, transparency, and operational and tax efficiency. Uncommonly, the four gold ETFs are not expected be subject to unrelated business taxable income (UBTI) and schedule K-1s, which are typically present in commodity-linked investments.

Wed, 02/12/2014 - 18:37 | Link to Comment remain calm
remain calm's picture

Gartmans next brilliant move he is working on is he is going to sell lemonade in 10 different currencies.

Wed, 02/12/2014 - 18:04 | Link to Comment remain calm
remain calm's picture

Shocker

Wed, 02/12/2014 - 18:20 | Link to Comment J S Bach
J S Bach's picture

Gartman's just a paper tiger (or at least a pussycat).

Wed, 02/12/2014 - 20:11 | Link to Comment strannick
strannick's picture

Paper Gold ETF: Gold in non gold terms

Wed, 02/12/2014 - 17:49 | Link to Comment Supernova Born
Supernova Born's picture

So paper gold in baseless fiat terms?

2 ply toilet paper in a variety of designer patterns.

Wed, 02/12/2014 - 17:56 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

you want to go halfers on an ETF buying gold in a variety of cryptocurrency denominations?

 

Me neither.

Wed, 02/12/2014 - 17:43 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

he's playing it via a call spread on dennis gartman's double chin.

Wed, 02/12/2014 - 17:45 | Link to Comment Supernova Born
Supernova Born's picture

Will gold in Yen terms have the "chef's favorite" star next to it?

Wed, 02/12/2014 - 17:43 | Link to Comment Say What Again
Say What Again's picture

Hmm

Wed, 02/12/2014 - 17:33 | Link to Comment StackAttack
StackAttack's picture

Does this mean he will sell me gold bars wrapped in Japanese fiat?  Stack Attack!

Wed, 02/12/2014 - 17:32 | Link to Comment Invinciblehandaxe
Invinciblehandaxe's picture

what a tool

Wed, 02/12/2014 - 17:49 | Link to Comment Minge
Minge's picture

Gold by the Dong.  HeHe.

Based on the Gartman heritage, gold by the Gartman Dong would be about 12,800 Dong/oz.

I believe that's why they call it the "Irish Lightswitch."

Wed, 02/12/2014 - 19:35 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

He went full retard. You never go full retard.

Wed, 02/12/2014 - 17:42 | Link to Comment bad craziness
bad craziness's picture

I don't get this.  If they are all listed in US$ on a US exchange then they will all have the same value - there is no hedge or gain to be had in these.

Wed, 02/12/2014 - 17:40 | Link to Comment bad craziness
bad craziness's picture

I don't get this.  If they are all listed in US$ on a US exchange then they will all have the same value - there is no hedge or gain to be had in these.

Wed, 02/12/2014 - 18:49 | Link to Comment deflator
deflator's picture

It is more about"let it be so" (the word FIAT is latin for let it be so, or decree)currency exchange rates than about the, "value" of gold. If an arbitrary ruler other than the U.S. says let it be so, then there is a change in the price of gold in the arbitrary rulers currency. Get it?

 Saying there is no difference is similar to Mish's dimwitted remarks about dollar hegemony.

 Mish thinks there is no such thing as dollat hegemony because he thinks traders can simply trade dollars for any currency of their choosing at any given instant.

 

 Nevermind that "let it be so" currencies are all about extrapolating the pasts confidence into the future and have nothing ro do with anything instantaneous.

I could go on... For example how many central banks around the wotld have purchased U.S. treasuries of various denominations and durations since WWII" Do You think that can all be unwound instantaneously?

Wed, 02/12/2014 - 20:41 | Link to Comment beegle
beegle's picture

so what i dont get is why a us citizen would want to buy gold denominated in other toilet currencies whats the upside ? just buy gold in usd ! dont get it...

Thu, 02/13/2014 - 04:58 | Link to Comment hobopants
hobopants's picture

Being a layman, I don't fully understand it either, but I think the Idea is it's a carry trade ETF where they borrow in a depreciating currency to buy an appreciating (relative to the borrowed currency) asset (Gold), and when they cash out they keep the spread.

So I borrow yen to buy a house and if yen drops and I sell the house for USD, I keep the spread between the two currencies plus any appreciation in the asset price, because I repay my loan in yen which during my ownership has weakend against the dollar.

The only reason this crap works is because the BOJ is printing faster than the FED. I also imagine that huge amounts of leverage are in play in order to make any significant money at all, which is why these fucks panic when the trend reverses. I could be way off and I would love to have someone more knowledgable correct me.

Another way of putting it would be that hedge fund types are borrowing money to bet on which fiat horse will "win" the race (the central banks being the flogging jockeys)

There was a time when I would be suprised that a fund has appeared for this sort of ultra speculative bullshit, now it gets a shrug.

 

Wed, 02/12/2014 - 17:46 | Link to Comment fuu
fuu's picture

" The foreign currencies are obtained through the sale of either exchange-traded currency futures or "over the counter" foreign exchange forward contracts."

 

This is paper paper paper gold.

Wed, 02/12/2014 - 17:49 | Link to Comment superflex
superflex's picture

What did PT Barnum say again?

Wed, 02/12/2014 - 18:19 | Link to Comment fuu
fuu's picture

Guaranteed not to turn pink in the can?

Wed, 02/12/2014 - 17:49 | Link to Comment css1971
css1971's picture

Um... Interesting... not to pour cold water on the scheme but won't any differences typically be arbitraged away by HFT systems?

Wed, 02/12/2014 - 17:49 | Link to Comment CvlDobd
CvlDobd's picture

The rally in miners shall not be allowed! In any terms.

Wed, 02/12/2014 - 18:14 | Link to Comment Al Huxley
Al Huxley's picture

They have no choice but to let them rally - I'm short Barrick, the only way they can fuck over the miners is to pay me out on that short position - ha ha!  But I'm long the juniors, so they're totally fucked either way!

Wed, 02/12/2014 - 18:24 | Link to Comment fijisailor
fijisailor's picture

Yeah.  Good bet.  Barrick is totally screwed with Pascua Lama

Wed, 02/12/2014 - 17:51 | Link to Comment kchrisc
kchrisc's picture

I propose that he call them the "LOL Funds."

Wed, 02/12/2014 - 17:57 | Link to Comment saltedGold
saltedGold's picture

I remember a few years ago when this clown said that he was, "violently bullish on gold."  That was a few days before gold started dropping.  Regardless, what the hell is violently bullish? 

Wed, 02/12/2014 - 22:12 | Link to Comment akak
akak's picture

Gartman actually said he was "violently bullshit" on gold.

 

And you know what?  He was 100% correct.

Wed, 02/12/2014 - 18:02 | Link to Comment akarc
akarc's picture

"Sadly missing: Gold in Dong terms."

Correction: Gartman aka "Dong"

 

Time to unstack?

Wed, 02/12/2014 - 18:08 | Link to Comment sphindog
sphindog's picture

How about gold in "idiot" terms?

Wed, 02/12/2014 - 18:07 | Link to Comment QQQBall
QQQBall's picture

Now I'm worried about POG. 

Wed, 02/12/2014 - 18:09 | Link to Comment akarc
akarc's picture

Alas Donga Den, he is better man than I.

Thu, 02/13/2014 - 03:09 | Link to Comment StychoKiller
StychoKiller's picture

Rudyard Kipling. 1865–
 
Gunga Din
 
YOU may talk o' gin an' beer     
When you're quartered safe out 'ere,     
An' you're sent to penny-fights an' Aldershot it;     
But if it comes to slaughter     
You will do your work on water,           
An' you'll lick the bloomin' boots of 'im that's got it.     
Now in Injia's sunny clime,     
Where I used to spend my time     
A-servin' of 'Er Majesty the Queen,     
Of all them black-faced crew     
The finest man I knew     
Was our regimental bhisti, Gunga Din.     
 
    It was "Din! Din! Din!     
    You limping lump o' brick-dust, Gunga Din!     
    Hi! slippy hitherao!     
    Water, get it! Panee lao!     
    You squidgy-nosed old idol, Gunga Din!"     
 
The uniform 'e wore     
Was nothin' much before,     
An' rather less than 'arf o' that be'ind,     
For a twisty piece o' rag     
An' a goatskin water-bag     
Was all the field-equipment 'e could find.     
When the sweatin' troop-train lay     
In a sidin' through the day,     
Where the 'eat would make your bloomin' eyebrows crawl,     
We shouted "Harry By!"     
Till our throats were bricky-dry,     
Then we wopped 'im 'cause 'e couldn't serve us all.     
 
    It was "Din! Din! Din!     
    You 'eathen, where the mischief 'ave you been?     
    You put some juldee in it,     
    Or I'll marrow you this minute,     
    If you don't fill up my helmet, Gunga Din!"     
 
'E would dot an' carry one     
Till the longest day was done,     
An' 'e didn't seem to know the use o' fear.     
If we charged or broke or cut,     
You could bet your bloomin' nut,     
'E'd be waitin' fifty paces right flank rear.     
With 'is mussick on 'is back,     
'E would skip with our attack,     
An' watch us till the bugles made "Retire."     
An' for all 'is dirty 'ide,     
'E was white, clear white, inside     
When 'e went to tend the wounded under fire!     
 
    It was "Din! Din! Din!"     
    With the bullets kickin' dust-spots on the green.     
    When the cartridges ran out,     
    You could 'ear the front-files shout:     
    "Hi! ammunition-mules an' Gunga Din!"     
 
I sha'n't forgit the night     
When I dropped be'ind the fight     
With a bullet where my belt-plate should 'a' been.     
I was chokin' mad with thirst,     
An' the man that spied me first     
Was our good old grinnin', gruntin' Gunga Din.     
 
'E lifted up my 'ead,     
An' 'e plugged me where I bled,     
An' 'e guv me 'arf-a-pint o' water—green;   
It was crawlin' an' it stunk,     
But of all the drinks I've drunk,     
I'm gratefullest to one from Gunga Din.     
 
    It was "Din! Din! Din!     
    'Ere's a beggar with a bullet through 'is spleen;     
    'E's chawin' up the ground an' 'e's kickin' all around:     
    For Gawd's sake, git the water, Gunga Din!"     
 
'E carried me away     
To where a dooli lay,     
An' a bullet come an' drilled the beggar clean.     
'E put me safe inside,     
An' just before 'e died:     
"I 'ope you liked your drink," sez Gunga Din.     
So I'll meet 'im later on     
In the place where 'e is gone—     
Where it's always double drill and no canteen;     
'E'll be squattin' on the coals     
Givin' drink to pore damned souls,     
An' I'll get a swig in Hell from Gunga Din!     
 
    Din! Din! Din!     
    You Lazarushian-leather Gunga Din!     
    Tho' I've belted you an' flayed you,     
    By the livin' Gawd that made you,     
    You're a better man than I am, Gunga Din!

Wed, 02/12/2014 - 18:12 | Link to Comment Yen Cross
Yen Cross's picture

   How about just trading gold vs what ever currency you want on the fx spot market Dennis?  Lazy bastard!

Wed, 02/12/2014 - 18:19 | Link to Comment texas sandman
texas sandman's picture

Haven't watched CNBS for a while...he still uttering his banal "good to be seen" answer to the host's "good to see you" intro?   That limp attempt at humor should, by itself, be enough to disqualify him from being taken seriously. 

Wed, 02/12/2014 - 18:12 | Link to Comment fijisailor
fijisailor's picture

Does this clown plan to actual have a vault with physical?  Never fear though "Ade Odunsi" the Nigerian will take care of business

Wed, 02/12/2014 - 18:19 | Link to Comment thewayitis
thewayitis's picture

Hoard the PHYSICAL...Not Paper ETF shit ....

Wed, 02/12/2014 - 18:17 | Link to Comment Johnny Cocknballs
Johnny Cocknballs's picture

If Gartman did not exist, Goldman Sachs would have to invent him.

Wed, 02/12/2014 - 19:24 | Link to Comment Hughing
Hughing's picture

I really really really pretty please really want Stolper to give this a two thumbs up

Wed, 02/12/2014 - 20:28 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

Did anyone else notice the strangest activity at the london am fix today?


The price held steady in usd allthe way but dipped and ripped in sterling. It seemed like cable jumped into the 1130am fix only to mean revert immediately after the fix

I find this fascinating in view of the ongoing multiple investigations into FX rigging.

Did someone just draw back the curtain for a second, only to let it drop again?

Any posterz got any ideas on this?

Wed, 02/12/2014 - 22:21 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

But if you are buying gold then you are buying gold, you have no currency risk only gold risk and counterparty risk when it hits the fan and turns out the gold stocks you purchased are not actually backed by any gold.

 

If you own an ounce of gold then you own an ounce of gold, the paper currency you denominate it in is a seperate thing entirely... If you wanna hedge your currency there are loads of products to do that from forex to futures already.

 

Yea I know its just another scheme to gather assets and rake in fees but still...  I don't get it

 

 

Thu, 02/13/2014 - 03:13 | Link to Comment StychoKiller
StychoKiller's picture

Seems pretty simple to me:  Muppets got munny, heesa got paper to trade...

Wed, 02/12/2014 - 22:25 | Link to Comment Notarocketscientist
Notarocketscientist's picture

"Humiliated"   HA HA HA

 

Dennis --- oh Dennis ---- do you read ZH?  

 

You are a fucking moron Dennis.   And only a total fucking moron would give another moron money to manage.

 

I love it when you get testy on the TV Dennis ---  which generally happens when you make a stupid comment --- or are wrong with yet ANOTHER call ---  which is often (always?)

 

Yoo Hooo Dennis --- you are a fucking moron  --  surely your mummy told you that many times though right?

Thu, 02/13/2014 - 16:18 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Isn't picking on Gartman at this point like picking on the handicapped kid in grade school?
I mean, we KNOW how far down the ladder this one is... he can't even find the ladder.

Wed, 02/12/2014 - 22:31 | Link to Comment akak
akak's picture

I just took a shit. 

In Gartman terms.

Thu, 02/13/2014 - 14:49 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

That's repeatedly redundant.

Thu, 02/13/2014 - 06:39 | Link to Comment firestarter_916
firestarter_916's picture

If all fiat currancy is a scam and not backed by anything than very simply sell ANY and ALL of your cash in every country and go long gold and silver. Seems more simple to me with less fees to boot.

Thu, 02/13/2014 - 14:47 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

rating: 5 for comedy BUT...

it's THURSDAY

w t f are we gonna do for FRIDAY humour now??

Fri, 02/21/2014 - 03:12 | Link to Comment buystop
buystop's picture

Is this still Zerohedge?  It's plain to see that the people commenting and possible the author don't know what in the hell they are taiking about.  All Gartman is doing is hedging out the "reserve" currency known presently as the US dollar.  It's done all the time when trading oil.  I don't know the other calls this Gartman character has made, but attempting to isolate Au from all the surrounding noise is a good idea. 

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