Content originally published at iBankCoin.com
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.