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"Buy Gold" - Gartman's Latest Flip Flop On The Yellow Metal

Tyler Durden's picture




 

Submitted by GoldCore

Gartman: EU Debt Plan to Hurt Currencies - Buy Gold in USD, GBP and EUR as “Is a Currency”

Gartman: EU Debt Plan to Hurt Currencies - Buy Gold in USD, GBP and EUR as “Is a Currency”

Gold is trading at USD 1,662.10, EUR 1,191.70, GBP 1,038.50, JPY 126,592.0, AUD 1585 and CNY 10,572/oz.
Gold’s London AM fix this morning was USD 1,656.25, GBP 1,036.19 and EUR 1,187.96 per ounce.
Yesterday’s AM fix was USD 1,651.00, GBP 1,035.56 and EUR 1,191.37 per ounce.

Cross Currency Table

Gold has edged higher in all major currencies again today as concerns about the European debt crisis and the risk of contagion is leading to demand for gold for wealth preservation purposes.

The likelihood of the Eurozone sorting out their intractable problems has come into question again as bankers in Europe’s largest banks have clashed with politicians about the size of losses they will have to take on their Greek debt.

Another bullish factor is more dovish sounds from the Federal Reserve regarding driving down mortgage rates to support the housing sector and another round of quantitative easing which was suggested by William Dudley, president of the New York Federal Reserve Bank.    

Gold in USD – 30 Days (Tick)

Physical demand out of Asia remains robust as seen in healthy premiums with gold premiums in Vietnam gold at a $28.07 premium over world gold of $1,642.65 and Shanghai gold closed at a premium of $12.89 to world gold of $1,652.25 (see LeMetropolecafe.com for Asian premiums).

Diwali is tomorrow and Indian demand has fallen somewhat but remains robust despite very significant demand in recent days and weeks.

Newsletter writer Dennis Gartman has done a swift about turn and is now adding to his gold position by buying the metal priced in dollars, pounds and euros, he wrote today in his daily Gartman Letter.

Only last Tuesday, Gartman wrote that the gold market is suffering "very real damage." His comments were picked up very widely making headlines in the financial media internationally. Gartman warned that he feared that the rally from September's lows is "now under assault."

Today, Gartman said in his newsletter that he was certain gold prices would break upwards sooner rather than later.

Gartman said that the EU debt plan would hurt currencies. Therefore, gold will rally as currencies fall.

"The authorities have no choice but to inflate their way out of the morass that they’ve found themselves falling into and that shall mean the diminution of currencies generally and the advancement of gold as the only currency not diminished", he said.

Gold in EUR – 30 Days (Tick)

"Gold is a currency; it has been for years and it shall be for years going forward. A move upward through EUR 1,200 for gold today or tomorrow or this week or next shall be impressive and important," he said in the newsletter.

Gartman’s about turn may be important as he has been good in recent years in being long when gold has been rising in price despite a number of incorrect bearish calls at key junctures. Also, he is followed by major banks, hedge funds and institutions who trade in gold on Wall Street and may influence their trading activities.

The swift about turn is indicative of the near impossibility of trading these markets in the short term. It is evidence that even the most experienced and respected of Wall Street analysts can make incorrect calls which can cost people money.

This is why we encourage ordinary investors and savers to adopt a widows and orphans approach to investing in these uncertain times by buying quality assets with real diversification and adopting a buy and hold approach.

Timing markets is only for professionals and even they often get it wrong.

We make a market in buying and selling bullion and it is not in our interest, from a short term profit point of view, to discourage trading and ‘churn’ as this leads to commissions.

Gold in GBP – 30 Days (Tick)

However, we take our fiduciary duty seriously and believe we will have relationships with clients and their families and friends for life if we look after their interests. We do this through protecting their wealth by adopting a ‘buy and hold’ approach with regard to their bullion holdings.

It is advisable to ignore the noise of traders, hedge funds, commodity brokers and more speculative elements. In these uncertain times, it remains crucially important to focus on the importance of gold as a portfolio diversifier and a safe haven asset.

For the latest news and commentary on financial markets and gold please follow us on Twitter

NEWS
(Business Week via Bloomberg) -- Gold Advances for a Third Day as Europe’s Debt Woes Spur Demand
http://www.businessweek.com/news/2011-10-25/gold-advances-for-a-third-da...

(Reuters) -- Gold steady before EU summit; physicals resilient
http://af.reuters.com/article/metalsNews/idAFL3E7LP06F20111025

(Bloomberg) -- Gold May Extend Rally to Record $2,200 Per Ounce, AngloGold Ashanti Says
http://www.bloomberg.com/news/2011-10-25/gold-may-extend-rally-to-record...

(Reuters) -- AngloGold CEO sees no bubble in gold price
http://www.reuters.com/article/2011/10/25/anglogold-price-idUSL3E7LP0BA2...

(Bloomberg) -- SPDR Gold Trust Holdings Increase 6.05 Metric Tons
http://www.bloomberg.com/news/2011-10-24/spdr-gold-trust-holdings-increa...

COMMENTARY
(MarketWatch) -- Gold Manipulation Thesis Goes Mainstream
http://www.marketwatch.com/story/gold-bugs-bruised-but-buoyant-again-201...

(King World News) -- James Turk Report - Why Gold Will Go Above $11,000
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/24_J...$11,000.html

(Goldseek) -- Where in the World is the Gold?
http://news.goldseek.com/GATA/1319385600.php

(Max Keiser) -- Jim Rickards: Don’t keep your gold in bank vaults
http://maxkeiser.com/2011/10/24/jim-rickards-dont-keep-your-gold-in-bank...

(Gold-Eagle) -- What Chinese Unemployment?
http://www.gold-eagle.com/gold_digest_08/fekete101911.html

(MoneyWeek) -- Bill Bonner: The Burdens of Empire
http://www.moneyweek.com/news-and-charts/economics/global/bill-bonner-th...

 

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Tue, 10/25/2011 - 07:55 | 1807497 speconomist
speconomist's picture

Fantastic contrarian indicator (Gartman), time to sell, although he probably bought gold in yuan too, or even a more exotic pair!

Tue, 10/25/2011 - 08:05 | 1807526 buzzsaw99
buzzsaw99's picture

with cramer and gartman both now saying "buy gold" how can the gold bugs lose? LMAO!

Tue, 10/25/2011 - 08:57 | 1807648 Pladizow
Pladizow's picture

CNBC's three stooges - Gartman, Kass and Cramer!!!!!!!!!!

http://www.youtube.com/watch?v=AKtwlHV1-O8

Tue, 10/25/2011 - 09:01 | 1807671 trav7777
trav7777's picture

well if the euro comes apart, gold will be going to infinity euros

Tue, 10/25/2011 - 09:13 | 1807679 JonNadler
JonNadler's picture

Am bullish on gold too now. OK, now being that I've always been wrong about gold and now I am making a prediction that it will go up, this means that gold will fall.

There,   gold doomed......and you still can't eat it

Akak! am I right?

 

Tue, 10/25/2011 - 09:21 | 1807744 Divided States ...
Divided States of America's picture

Of course the Fartman flip flops, I am sure he was deceiving all of them people in selling while he was gobbling up everything he could...I dont trust most shills that provide commentary on CNBC, especially the Fast Money clowns.

Tue, 10/25/2011 - 14:46 | 1809380 CIABS
CIABS's picture

i'd give some credence to martin armstrong who says that PMs will continue to consolidate for a while, probably for several more months.

Tue, 02/07/2012 - 04:53 | 2133233 expert urls
expert urls's picture

I am a tutorial on Vietnam visa and Vietnam Airlines flights. I think the decision can not be sure. I will wait for the latest news.

.........................................................................................................

Response from the instructor on the Vietnam visa and Vietnam Airlines flights

Tue, 10/25/2011 - 14:46 | 1809367 akak
akak's picture

There,   gold doomed......and you still can't eat it

Akak! am I right?

 

Jonny, you forgot to mention the monumental, overriding, all-encompassing impact on the gold market of the Indian wedding season and "jewelry" demand (for shame!), as well as all those mountains of scrap gold just littering the landscape and ominously waiting to avalance down on all us unfortunate and misguided "radical extremist goldbugs".  Shit, just tripped over another one!

Tue, 10/25/2011 - 08:27 | 1807571 LeonardoFibonacci
LeonardoFibonacci's picture

Even Simple Jack knows that you never go full retard!

Tue, 10/25/2011 - 07:55 | 1807500 TooBearish
TooBearish's picture

Fartmen -king of whipsaw- shorted and stopped out of EUR 2 handles ago

Tue, 10/25/2011 - 07:55 | 1807501 qussl3
qussl3's picture

Down before new highs in the paper price.

Good luck on those premiums.

Tue, 10/25/2011 - 07:57 | 1807504 GeneMarchbanks
GeneMarchbanks's picture

Dennis Gartman = Fraudster

Gold = Priceless

 

Tue, 10/25/2011 - 07:56 | 1807505 HelluvaEngineer
HelluvaEngineer's picture

He's just now realizing this?  Brilliant.

Tue, 10/25/2011 - 07:58 | 1807513 QQQBall
QQQBall's picture

He has to be dead?  Didn't he say tha tCu would bever break $4 again in this lifetime?

Tue, 10/25/2011 - 08:00 | 1807516 Savonarola
Savonarola's picture

Who's the bigger Jonah - Cramer or Gartman?

Maybe it's time to sell ma dust.

Tue, 10/25/2011 - 08:03 | 1807519 ArkansasAngie
ArkansasAngie's picture

It's the leverage stupid.

In a free market this might be true.  When leverage allows governments and central banksters to easily move the market as they please, gold and silver aren't what they used to be ... by design and malice of forethought.

Once regulation was designed to prevent fraud.  Now regulation is used to insure fraud is maintained.

 

Tue, 10/25/2011 - 08:11 | 1807536 SilverIsKing
SilverIsKing's picture

Well said.

Tue, 10/25/2011 - 08:32 | 1807580 Hmm...
Hmm...'s picture

Great comment ArkansasAngie.

but it's not just govts and central banksters, it's also private banksters and hedge funds as well.

Although gold may outperform other assets in the future, there is no question that it's valuation is part inherent, part speculation, and part manipulation...  But the speculation and manipulation are working in BOTH directions (green and red, up and down).

not sure why people insist that the manipulation is only downwards...  We all know that the big guys manipulate equities up and down, and profit both ways.  they do the same to the Gold/silver/PM Market.  (yes yes, there is always the JPM silver short, but that doesn't mean a big bank or hedgie is not on the other side of that).

and although paper and physical markets clearly have differences, they also affect each other mightily.  In theory, at some point the paper market could "break" but that hasn't happened yet

Tue, 10/25/2011 - 09:19 | 1807735 Snidley Whipsnae
Snidley Whipsnae's picture

"In theory, at some point the paper market could "break" but that hasn't happened yet"

China is purposefully working on it.

India, Mid East, rest of world are working on it... most unknowingly.

Knowing or unknowing the outcome will be the same... paper vs physical price divergence eventually.

Tue, 10/25/2011 - 08:04 | 1807523 breezer1
breezer1's picture

he has no choice but accept gold as currency if he wants to keep a shred of credability with his 'clients' whoever they are. 

Tue, 10/25/2011 - 08:05 | 1807524 MFL8240
MFL8240's picture

A week ago he said sell so he and his comrades could buy cheaper.  What a goddam fraud.

Tue, 10/25/2011 - 08:05 | 1807525 Apostle of Unknown
Apostle of Unknown's picture

Doesn't the Gartman indicator work the other way around? His selling calls are more often right, his buy calls are woefully wrong... Anyway, it's always a chore plowing through his daily mind dump.

Tue, 10/25/2011 - 08:10 | 1807534 Zola
Zola's picture

Tyler, how about a link to the performance of the Gartman etf, HAG:CN  , for a good LAUGH ...

Tue, 10/25/2011 - 10:55 | 1808226 uranian
uranian's picture

ahaha. down 16% ytd. thanks for that suggestion. i never did like gartman, recall seeing him on BNN with john embry many years ago, and he was rather supercilious...embry was enough of a gentleman to tell gartman that he read his newsletter, to which gartman responded with something of a snort at the idea that goldbugs would read it. he was also very condescending to a caller who suggested that derivatives were rather scary. bit of an all round turd, really.

Tue, 10/25/2011 - 08:19 | 1807550 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Exchange your currencies for money, before your goverment and their owners exchange your currency for another form of currency worth a fraction of it's current 'value'. That's all you need to know.

Tue, 10/25/2011 - 09:23 | 1807747 Snidley Whipsnae
Snidley Whipsnae's picture

Agree... except I would instead say...

Exchange your currencies for a store of value, before your gov and their owners screw you out of the remainder of your savings held in fiat dollars, Euros, etc.

Tue, 10/25/2011 - 08:21 | 1807560 Upswaller
Upswaller's picture

 

"The authorities have no choice but to inflate their way out of the morass that they’ve found themselves falling into and that shall mean the diminution of currencies generally and the advancement of gold as the only currency not diminished", he said.

Do these people simply not already know this?  Is this ignorance of the facts or willful lying, it's one or the other.  I'm just a small business (doctor), have utterly no formal economic education, and stack based on facts.  Are these financial "gurus" that entrenched in the lie or the dream?  It's nauseating. 

 

Tue, 10/25/2011 - 08:39 | 1807610 Enceladus
Enceladus's picture

I love the sound of capitulation in the morning. Seems like DG finaly gets it.

Tue, 10/25/2011 - 09:25 | 1807755 Snidley Whipsnae
Snidley Whipsnae's picture

Gartman 'got it' all along... You can bet that the sob and his pals are up to something.

Tue, 10/25/2011 - 08:21 | 1807561 mark mchugh
mark mchugh's picture

I love gold, and I hate Gartman.  If you're paying attention, you know you can make money trading against him.

I believe that goldbugs will find lower prices in the near future:

  • Both the Yen and the Euro need to weaken desperately (this means strong dollar).
  • JPMs house account took delivery of more than 7000 gold contracts April - June (around $1500), they've been selling since August.

http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf

To me, this means that gold will likely pull back to around $1500 as the dollar strengthens....wait for it.

 

Tue, 10/25/2011 - 09:29 | 1807767 Snidley Whipsnae
Snidley Whipsnae's picture

Yeah... and my reading of goat entrails, crystal ball and my minature of the oracle of Delphi say your are dead wrong. Nice try at sublety... but somewhat transparent...troll.

Tue, 10/25/2011 - 08:21 | 1807562 bania
bania's picture

I hope Gartman reads ZH and these boards.

Gartman, you're an idiot.

Tue, 10/25/2011 - 09:00 | 1807668 oddjob
oddjob's picture

Gartman is a whore.

Tue, 10/25/2011 - 09:24 | 1807752 kito
kito's picture

Gartman is a jackass....

Tue, 10/25/2011 - 14:40 | 1809353 akak
akak's picture

Gartman is a wart on the hemorrhoid of an AIDS-infested syphilitic baboon.  And I hear he has terrible halitosis too (but don't all fat, bearded old men?).

Tue, 10/25/2011 - 09:09 | 1807706 Bastiat009
Bastiat009's picture

I believe there is a huge gap between what Gartman says and what Gartman does. Either that or he is completely broke, which I can't exclude either, otherwise why would he sell his "newsletter."

Tue, 10/25/2011 - 09:12 | 1807717 Stuart
Stuart's picture

Gartman is generally a fade, an egotistical fade, but even a broken clock gets it right twice a day.

 

Tue, 10/25/2011 - 09:17 | 1807727 Ted Baker
Ted Baker's picture

ACTUALLY HE'S RIGHT FOR ONCE

HE SAID TO BUY WHEN GOLD TRADING 1,685 AND IT HAS SINCE HIS CALL...

THE CORRELATION OF GOLD TO US EQUITY WILL BREAK THIS WEEK. GOLD PRICES WILL GO UP AND DOLLAR WILL SINK FURTHER....ALTHOUGH EURO MAY SINK TOO GOLD WILL REMAIN AHEAD OF THE GAME WITH PRICES REACHING THE 1,710 MARK THIS WEEK...

Tue, 10/25/2011 - 09:33 | 1807779 Snidley Whipsnae
Snidley Whipsnae's picture

Ted... unlock the 'caps'... those of us that have bad eyesight have purchased eye glasses.

and as for your prediction... roll some bones, read some goat entrails.

Gold is going up because fiat is fucked.

Tue, 10/25/2011 - 09:17 | 1807728 PulauHantu29
PulauHantu29's picture

But you can't eat the Barbaric relic?!

Whyh is everyone buying the yellow metal?

Tue, 10/25/2011 - 09:19 | 1807736 Whatta
Whatta's picture

gartman is a douche.

can I say that here? gartman? douche?

Tue, 10/25/2011 - 09:27 | 1807762 Clint Liquor
Clint Liquor's picture

Gartman is not a douche. A douche serves a useful purpose.

Tue, 10/25/2011 - 09:23 | 1807748 Dr. Gonzo
Dr. Gonzo's picture

...and this deep thought just popped into his peabrain?

Tue, 10/25/2011 - 09:26 | 1807759 Clint Liquor
Clint Liquor's picture

US Silver Eagles sold over 36 Million so far this year to set a new record. Here is an interesting link where you can review the present and past years sales by the month. In 1998 when Silver was $4.50, 4 million sold.

http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2011

 

Tue, 10/25/2011 - 09:51 | 1807858 Chuck Walla
Chuck Walla's picture

"The authorities have no choice but to inflate their way out of the morass that they’ve found themselves falling into...

 

What is he talking about?  The "authorities" are the frigging architects of this morass! 

Tue, 10/25/2011 - 10:02 | 1807932 mogul rider
mogul rider's picture

TRADEABLE GOLD SOLD!

Thanks to Dennis "the man" Gartman.

Just short his long trade or long his short trade and you'll do just fine.

There are no fundamentals only the Gartman Put.

thank you very  very much.

Tue, 10/25/2011 - 10:14 | 1807990 thunderchief
thunderchief's picture

Has anyone read anything on America's new housing Visa?

If you buy a home for over 500K you get a Visa!  A housing Visa!

So every Drug cartel member, deposed dictator, sweatshop owner, human trafficer, or international scumbag with a garbage passport can now reep the same benefits as you. 

What a country, as Klinger used to say.  I think he was Lebanese.  Come on down with your 500k.  America is ready to bend over.

And don't worry people.  Every nice place in the USA you thought of retiring in, like Hawaii, San Fran, NY, Aspen, Co etc (just examples) will cost you 500k more.  What a bunch of money housing whores Washinton is.

Tue, 10/25/2011 - 10:30 | 1808084 wang (not verified)
wang's picture

Gartman has a great gig

say whatever to whomever whenever from his paneled office overlooking the beach as he spins the currency/commodity wheel creating content for the day's letter

Tue, 10/25/2011 - 10:46 | 1808175 oa92000
oa92000's picture

GOLD?? what happened @ 1990? nobody wanted gold??

Tue, 10/25/2011 - 17:41 | 1810101 Spigot
Spigot's picture

It occured to me while reading this that one reason why BennyB did not start QE3(to infinity) was that the Euro-zone had not yet committed to more currency depreciation. All currencies have to be depreciated equally or else you get really crazy stuff happening. But now I notice alot of hints about US easying just at the point where the EU is going to commit to flooding the streets with paper too. Ah! Coordinated desacration! Bravo!

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