'This is the time when you should own gold' - Dennis Gartman
The central banks have no choice but to remain expansionary, which is good for gold, said Dennis Gartman.
Gartman is the retired editor of the Gartman Letter. He spoke to Bloomberg recently. The interview was posted yesterday.
Gartman said he is not a "gold bug"
"I am actually an optimist. But I believe the monetary authorities, led by the Fed, have no choice but to remain expansionary," said Gartman.
Gartman sees the central banks becoming even more expansionary.
As of the recording, Gartman noted that gold broke out above $1,700 and said gold should go a "good deal higher"
"There are times when you should own gold. There are times when you should not. This is a time where you should."
To play gold's rise, Gartman said investors should look at ETFs or gold miners.
"I prefer the ETFs. It is a better way to go," said Gartman.
Gartman said his bet on gold is not a bet on deflation--yet.
"It is a bet on the debasement of major currencies.
Gartman said central bank buying has been a major force in propelling gold higher. Gartman points out that central banks in Russia and China have been big buyers of gold. In 2019 China added 106 tonnes of gold to its official reserves, while Russia acquired an additional 145 tonnes.
"And now it will be the retail investors who will be a big buyer of gold."
Gartman said gold buying has been constrained in India due to the COVID-19 lockdown, but when restrictions are lifted he predicts that the Indian market will bounce back.