The Gartman Letter: Long Gold in Yen Terms
Dennis Gartman has been directly involved in the capital markets since 1974 and has been publishing his daily commentary, The Gartman Letter, since 1987. The following is an excerpt from today’s The Gartman Letter.
We remain, as we have for more than a year, long of gold in Yen terms. But we draw attention to the chart of gold in weekly terms, and we note the “reversal” to the upside two weeks ago which still obtains even despite the “attack” upon gold earlier this week when prices fell $30/oz. in a matter of moments. The fact that the weekly reversal in gold’s favour holds is impressive.
Further, the price of gold in terms of WTI crude is now very “inexpensive” in oil terms for it took 22.5 barrels of crude to buy an ounce of gold back in late ’11 and it takes “only” a bit more than 13 barrels to do so presently, having gotten down to 11.5 barrels back in July of last year. Gold is “cheap” relative to crude oil, or crude oil is expensive relative to gold; we care not which “position” one wishes to see as relevant. However, as we watch gold buying continue at a heady pace in China and even too in India despite the latter’s government’s attempt to quell demand, we are impressed.
We have said many times in the course of the past several weeks that the time for being short of gold is now behind us, but we’ve refrained from turning bullish of gold heretofore. We are still refraining from doing so, but rest assured that our interest is piquing and our propensity to act is rising.The above communication is a publication of The Gartman Letter and is not intended to provide personalized recommendations to buy, hold or sell investments. The Gartman Letter’s information, statements, views, and opinions are based on internal and external sources considered by The Gartman Letter to be reliable, but The Gartman Letter makes no express or implied representation or warranty to those sources’ 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. Investors should verify all claims and conduct their own research before investing based on the above communication provided by The Gartman Letter.