Who Made Dennis Gartman "The Commodities King?"

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.


Aussiekiwi Mon, 09/25/2017 - 06:10 Permalink

'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.'Which is not what he said ...In the authors own highlighted sentence Gartman says he does not see the unwinding as a head wind for Gold not as the reason for Gold trading higher and he actually gives a reason which the idiot high lighted as well, is going to take 5 or 6 years.Gartman actually gives the reason why he believes Gold will be higher, 'Central banks and easy money', there is more than one Central bank in the world, the author appears to be ignorant of this.Now I don't think anything of Gartmans predictive powers for Gold or anything, but come on, some of these articles an 8 year old could blow holes in!! Does anybody actually read this crap before posting it?

anarchitect Mon, 09/25/2017 - 07:01 Permalink

What "gold position" did you have?  If neither physical nor something definitely backed by it, nothing has changed.  If real gold, then did you also cancel all your insurance policies to invest in whatever you think is the bet du jour?

BigJim anarchitect Mon, 09/25/2017 - 08:14 Permalink

What changed? He increased his capital; ie, his purchasing power.If gold suddenly lurches upwards in dollar terms he'll have missed out on further augmentations of his purchasing power, sure. But how well has "buy and hold" worked for the last 6 years?Gold bugs resent successful gold traders because the latter are getting richer, in real terms, while goldbugs aren't.Yeah, yeah, I know that in the long run, the world will end and goldbugs will be kings, KINGS I tellz ya!But you know what the Establishment's favorite pedophile economist said about the long run...I own gold, allocated phyzz stored in a vault in Switzerland. But fuck I wish I'd ignored Sprott et al and bought Treasuries instead.

In reply to by anarchitect

anarchitect BigJim Mon, 09/25/2017 - 08:23 Permalink

There are very few successful gold "traders".  Most trade futures, which are highly manipulated.The choice isn't gold OR treasuries.  You can own both as core positions.  No outcome is certain, but looking in the rear-view mirror is.Buy and hold hasn't worked if you started in 1980 or 2011.  But it has worked if you bought in 1975 or 2000.  Anything can look good or bad if one cherry-picks the timeframe.

In reply to by BigJim

DEMIZEN Mon, 09/25/2017 - 14:00 Permalink

if gold spikes 0.006 on a day like today , gold either means nothing in monetary terms, markets were neutered, or real price can not be discovered.

ReturnOfDaMac Mon, 09/25/2017 - 14:06 Permalink

Like him or not The_Real_Fly is spot on with this one.  You DO NOT want to be on the same side of any trade as Gartman!!  This confirms it for me, sell rocks, buy stocks.

LoveTruth Mon, 09/25/2017 - 18:04 Permalink

The reason to own precios metals are many. Among them great injustice in the court system. You can be destroyed literary by crooked people and lawyers for nothing. You can be destroyed by twisted in the minds and hearts government officials as well. They will come after everything you own and will take it. However if you own physical cash or PM and hide them outside your home they'll never find them. Do not ever, ever trust the US justice system! The US justice system is a hit or miss system, and for you it will most likely be "miss". 

silverer Mon, 09/25/2017 - 16:58 Permalink

Who Made Dennis Gartman "The Commodities King?"

I'm not sure about that. But Dennis is certainly the financial entertainment king in my book.

VangelV Mon, 09/25/2017 - 17:14 Permalink

The simple fact is that the US is highly indebted and the Fed is trapped.  That is the reason to own gold, not because Garman is being called the commodity king.  I would think that all gold bears would love the idea of Gartman supporting gold because he is so often wrong.  But they can't be very happy that the bubbles in debt, equities, and real estate seems to be ready to pop.  Guess who benefits if that happens?

YourAverageJoe Mon, 09/25/2017 - 18:41 Permalink

With all the ETF's and other derivative claims on gold, as I understand it, there are at least 900 claims on the value of an ounce of gold per real physical ounce of gold.I don't want to be the guy holding the bag when the shit gets real.

OZZIDOWNUNDER Mon, 09/25/2017 - 21:12 Permalink

"I'm so glad that I sold the last of my gold position on Friday."Gartman may be a flip flop & a waste of space BUT the A/ Hole who wrote this dribble is a Fucking Idiot who ovbviously knows little about Gold & is just an anti Gold Spruiker.