I read this morning that Dennis Gartman’s trading of gold resembles the hip hopping of a bunny in the back yard; in and out of gold, and not necessarily at a profit.
The Gartman Letter is now selling gold near the $891 level.
“The uptrend that extends back into the lows of last November and December has been decisively broken, and since then, the most recent rally attempts have failed at progressively lower levels, while the lows are steadily lower too,” Gartman says.
As far as I’m concerned, there are a great many variables with the price of gold making it almost impossible to call a direction simply based on past price action.
But do as you see fit.
Harry Schultz suggested shorting gold only to protect gold stock holdings. Both Harry & Gartman did emphasize this is a short term scenario.
If you are trading, do one thing. If you are investing do another. If saving, then you find a good price, buy and never sell. James Turk of Goldmoney made that statement the other day and it reminded me of a comment by a stockbroker I once worked with.
He said: “A bank CD is not an investment, nor is a bond held to maturity; they are SAVINGS vehicles. An investment gives you the potential to receive more than just your money back with a fixed rate of return that you HOPE will cover the loss of purchasing power due to inflation”.
Well spoken.
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