It seems Dennis Gartman has gone long gold again yesterday. Last time it didn’t last long, he was stopped out almost immediately.
I only write about Dennis because so many people seem so interested in what he does. Now, granted Dennis is a trader and I’m not. I do understand buying strength and selling weakness. Problem is that I haven’t seen that work very often.
When an item is range bound, as gold appears to be currently, Gartman’s strategy appears to make him buy high and sell low as many times as not. That loses money.
Gold and silver are especially tricky due to the manipulation that I believe exists. Click on the GATA link in my blogroll for details.
My point is that with gold and silver you have to look at the longer term. If you want to own it, then buy on dips understanding that it might go lower – buy more at that point if you can. When gold and silver appear to be bad investments due to dollar strength or whatever, then look to sell on rallies – understanding that it might go higher.
I don’t know what Dennis Gartman’s stop is this time, I just hope it takes longer than 24 hours to hit it this time.
Follow Dennis’ advice on gold and silver if you want to, but I’m sticking with a longer term approach such as that taken by Casey Big Gold.
(Note: I do not give specific investment advice and nothing you read here should be construed as such)
