Pages Menu
TwitterRssFacebook

Posted by on Jan 17, 2017 in Dennis Gartman, Market Insight

Commodity Divergence

Commodity Divergence

January 17, 2017

Dennis Gartman is editor and publisher of The Gartman Letter, and strategic advisor of the AdvisorShares Gartman Currency Hedged Gold ETFs (GEUR & GYEN). He regularly contributes to AlphaBaskets and lends his institutional insight to educate advisors and investors about commodities and the forex markets, including about trading gold in different currency terms.

 
Turning to gold it is rather obviously strong and for once it is actually stronger in US dollar terms than it is of the Yen. It is interesting too that gold is firmer as crude oil and base metals prices are weaker, and although some may want to suggest that gold shall eventually succumb to the bearish effects of weak crude and weak base metals, we shall argue instead that gold’s strength in the face of that weakness is all the more impressive.

We continue to be impressed with gold’s recent strength in light of the monetary problems still besetting India. India and Indians have been effectively removed from the market in light of what the Modi government did in late November in confiscating the two most commonly held currency denominations and in very badly handling the “swapping” of old currency for new. But eventually this shall be resolved and when it is resolved the Indians will be back in the gold market in full… and indeed in fuller… form and function. That we are certain of.
 

The information, statements, views, and opinions included in this publication are based on sources (both internal and external sources) considered to be reliable, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. Such information, statements, views and opinions are expressed as of the date of publication, are subject to change without further notice and do not constitute a solicitation for the purchase or sale of any investment referenced in the publication.
david@mediaworksllc.com

The AlphaBaskets blog provides frequent market insight and commentary by AdvisorShares Investments, LLC, created by AdvisorShares and other leading active managers.  AdvisorShares Investments is an SEC-registered investment adviser and the investment adviser to the AdvisorShares actively managed ETFs. The views expressed on AlphaBaskets should not be taken as investment advice or a recommendation for any of the actively managed ETFs advised by AdvisorShares.

X