Monday, November 16, 2009
Dennis Gartman, author of the Gartman Letter and the frequent target of attacks by gold bugs (though not too much lately), thinks that gold is in a bubble but has no idea how big the bubble might get, growing ever larger "until it stops".
That part at the end about "dancing while the music is playing" spurs memories of similar comments by hedge fund managers in early-2008. Hmmm...
This report at CNBC has a few more details:
"It is a gold bubble," Gartman told CNBC. He called the trade on gold "mind boggling," but also said he is currently long — or betting gold will go higher.Gartman is famous for saying "buy what's going up, sell what's going down" (or something to that effect) and that helps to explain why everyone is selling the dollar these days - it's about the only thing that's going down.
Gold hit a fresh record high above $1,130 an ounce early Monday as the dollar fell against other Western currencies.
Gold's Friday low of $1,102 an ounce is the floor, according to Gartman. If it falls below that mark, he suggests investors should "head to the sidelines."
The trend for the dollar is "still down" and will continue, Gartman said. It's an "unbelievably crowded trade," he added.