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'This is the time when you should own gold' - Dennis Gartman

Kitco News

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.