Gartman: Everyone Needs to Own Gold

Dennis Gartman - publisher of The Gartman Letter, a daily commentary on the global capital markets.

“Gold is just another currency,” well-known investor and newsletter publisher Dennis Gartman told CNBC Tuesday. “It is doing well in other currency terms…I am not a gold bug. I don’t think the world is coming to an end, but I think everyone needs to own some gold.”

Western households grew more bullish towards gold last month, according to Gold Investor Index data published by online gold and silver exchange BullionVault Wednesday.

The Gold Investor Index, which tracks the balance between gold buyers and sellers on BullionVault‘s exchange, rose to 52.5 last month, up from 52.1 in August. A figure above 50 indicates more individual buyers than sellers during the month.

September saw the European Central Bank unveil its unlimited sovereign bond buying program, Outright Monetary Transactions, while the US Federal Reserve announced an open-ended third round of quantitative easing. The Eurozone crisis also returned to the headlines.

“Private households are continuing to join the bull market,” says BullionVault head of research Adrian Ash. “But the response by retail investors to both QE3 and the latest phase of the Eurozone crisis is more measured…than the recent price action alone might suggest.”

“We do not, at this stage, believe that another significant up move [for gold], that is to say to the $1900 level, will be seen before further consolidation has occurred,” says Axel Rudolph, senior technical analyst at Commerzbank. “The $1815 area may be reached, though.”

Gold prices are up nearly $100 an ounce since the start of September, while the US Dollar Index, which measures the Dollar’s strength against a basket of other currencies, has fallen more than 2% since August 31, the day Fed chairman Ben Bernanke hinted at QE3 during a speech at the annual Jackson Hole conference.

Dollar gold prices hit new 2012 spot market high earlier this week, touching $1791 per ounce, but have been trading in a much narrower range over the last fortnight than they were over the four previous weeks.

“We are going through a bit of a consolidation period,” says Jeremy Friesen, commodity strategist at Societe Generale. “My suspicion is that we’ll get more monetary policy responses from other central banks as the Fed program kicks off and the ECB program starts, probably by the end of this month. That’s bullish for commodities like gold.”

By Raphael Thurber

Raphael Thurber is a respected resource writer and editor. A graduate of the College of William and Mary, Raphael is a longtime contributor to Yahoo Finance, with an interest in resource and investment journalism that spans over 10 years. As Editor of MiningFeeds, Raphael is responsible for assuring that the site remains a valuable knowledge resource for those in the mining sector.

If you would like to receive our free newsletter via email, simply enter your email address below & click subscribe.

MOST ACTIVE MINING STOCKS

 Daily Gainers

 Australian Mines Ltd. AUZ.AX +900.00%
 Adex Mining Inc. ADE.V +50.00%
 Casa Minerals Inc. CASA.V +30.00%
 Rare Element Resources Ltd. REE +26.63%
 Astro Resources NL ARO.AX +25.00%
 Tearlach Resources Ltd. TEA.V +21.05%
 MacDonald Mines Exploration BMK.V +16.67%
 GME Resources Ltd. GME.AX +16.67%
 Standard Lithium SLL.V +16.42%
 Black Iron, Inc. BKI.TO +16.28%

Download the latest Solaris Resources (SLSSF) Investor Kit

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

MiningFeeds will use the information you provide on this form to be in touch with you and to provide updates and marketing.