News Bites
'Gold To Outperform All Other Currencies' - Gartman
(Kitco News) - Gold is likely to hit $1,400 level within a year, said famed investor and gold expert Dennis Gartman.
“One currency that will probably do best of all is gold,” he told CNBC’s Futures Now. “Gold has been rallying in dollar terms. It has been a bull market since December. And it is still a bull market.”
Gartman noted that on average gold has been outperforming S&P 500 this year.
“The last rally took us from $1,200 to $1,370. And the fact that we are now below $1,300 is relatively inconsequential,” he said.
On Thursday afternoon December Comex gold was last seen trading at $1,295.70, up 0.53% on the day.
Gartman suggested that traders should take advantage of slightly lower gold prices and invest now. “If you are not long, you should use this weakness we have had in the past two weeks to be a buyer, no question,” he pointed out.
The commodity expert sees gold rising to $1,400 in just one year. “Gold will be demonstrably higher then where it is right now. $1,400 is a reasonable expectation.”
Gartman added that he chooses gold not because he is a believer of the world ending anytime soon.
“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 explained.
The investor specified that gold is good to have while “the monetary authorities are all still remaining expansionary,” as dovish central banks tend to put pressure on currencies such as the U.S. dollar and euro.
In terms of the upcoming rate hike in December, Gartman is not too worried, as the tightening of the Fed's easy monetary policy “is going to take five or six years. This is not something that will occur overnight.”
