Dennis Gartman, Editor, The Gartman Letter
Bloomberg Television Interview
October 30, 2009
Bloomberg: We know you’re a reluctant gold bull. Do you have gold bars in your basement?
Gartman: I have some coins and we’ll let it go at that. Yeah, I actually have a little gold bullion. I think everybody should have a little bit just in case. But do I like that? No. Do I like being bullish of gold? And I am bullish. I have been long of the gold market for a long time in dollar terms, in euro terms, in British pound sterling terms. But am I happy when I’m bullish of gold? No, because its really not a bet on all things great. It’s a bet on inflation. It’s a bet on monetary policy going awry It’s a bet on the things that John [earlier interview] was just saying that my old friend Paul Tudor Jones owns gold for. Because one, it’s its time and as Einhorn [David Einhorn, manager of hedge fund Greenlight Capital which holds physical gold] says, it’s a monetary circumstance.
Bloomberg: How much farther does the dollar have to go, because you can’t talk about gold without talking about the dollar?
Gartman: Well actually, you can talk about gold going up in terms of other currencies and that’s what’s important. Great bull markets in gold are not just predicated in dollar weakness. Great bull markets in gold are predicated in monetary policies going awry everywhere. Gold has become, for all intents and purposes, the second or third reservable asset, and I think that’s what’s taking it higher. Obviously people that think gold goes up when the dollar gets weak, and it does indeed go up in dollar terms. But if you looked at a chart of gold in sterling terms, if you looked at a chart of gold in euro terms, they would look very similar to a chart of gold in dollar terms. Gold’s going up in all terms.
Bloomberg: Can we see $1,300 oz by March?
Gartman: By March? I guess you can. I like to say that the trend is moving from the lower left to the upper right. We’ll go higher. I think we’ll be higher a month from now than we are now. I think we’ll be higher six months from now than we will be a month from now, but if you say will it get to a price by a certain time and if you miss either one, people come back and call you a fool. So having been in this business for 35 years, I’ll simply say that [you should] take a look at the chart you have in front of you now. It’s moving from the lower left to the upper right. It’ll probably continue to do that.
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