Gartman admits he made a bad call on gold
Investment letter writer Dennis Gartman has declared that he was wrong about gold.
In his daily investment letter Thursday, Mr. Gartman officially reversed his outlook for gold, saying he now views the precious metal as being in a bull market.
The new position follows a month where Mr. Gartman was the subject of some high-profile name calling from fellow investment letter writer, Peter Grandich. Mr. Grandich called Mr. Gartman “one of the Three Stooges” of gold forecasting after the latter declared that gold was officially in a bear market (if you’re wondering, the other two accused of being in that trio are Jeff Christian of CPM Group and Jon Nadler of Kitco).
Mr. Gartman’s reversal comes as he has failed to buy back gold below the price he sold it at a few weeks ago. He said that now that gold priced in euros has taken out its previous interim high, he sees the metal returning to a bull market.
“The bear run that began in August has now officially ended, for the string of lower lows and lower highs is over,” he said in his Gartman Letter. “This does not help us in hoping for/expecting/indeed demanding some weakness into which to buy, but it does give us “permission” to become officially bullish once again.”
Whether his new position will be enough for Mr. Grandich to back down, however, is another question.
When Mr. Gartman made the bear call last month, Mr. Grandich said he was willing to wager Mr. Gartman US$1-million that gold will hit US$2,000 an ounce before it hits US$1,000 on the COMEX.
He even went as far as arranging for a law firm — Lomurro, Davison, Eastman & Munoz of Freehold, New Jersey — to hold the funds in trust.
For what it’s worth, Mr. Gartman admitted his call on gold was a bad one.
“We sold gold rather properly several weeks ago; we failed miserably, however, to buy it back for although our intent was clear late last week as we said it was our intention soon to re-buy that which we had sold, we’ve failed to do so,” he said.
Original source
In his daily investment letter Thursday, Mr. Gartman officially reversed his outlook for gold, saying he now views the precious metal as being in a bull market.
The new position follows a month where Mr. Gartman was the subject of some high-profile name calling from fellow investment letter writer, Peter Grandich. Mr. Grandich called Mr. Gartman “one of the Three Stooges” of gold forecasting after the latter declared that gold was officially in a bear market (if you’re wondering, the other two accused of being in that trio are Jeff Christian of CPM Group and Jon Nadler of Kitco).
Mr. Gartman’s reversal comes as he has failed to buy back gold below the price he sold it at a few weeks ago. He said that now that gold priced in euros has taken out its previous interim high, he sees the metal returning to a bull market.
“The bear run that began in August has now officially ended, for the string of lower lows and lower highs is over,” he said in his Gartman Letter. “This does not help us in hoping for/expecting/indeed demanding some weakness into which to buy, but it does give us “permission” to become officially bullish once again.”
Whether his new position will be enough for Mr. Grandich to back down, however, is another question.
When Mr. Gartman made the bear call last month, Mr. Grandich said he was willing to wager Mr. Gartman US$1-million that gold will hit US$2,000 an ounce before it hits US$1,000 on the COMEX.
He even went as far as arranging for a law firm — Lomurro, Davison, Eastman & Munoz of Freehold, New Jersey — to hold the funds in trust.
For what it’s worth, Mr. Gartman admitted his call on gold was a bad one.
“We sold gold rather properly several weeks ago; we failed miserably, however, to buy it back for although our intent was clear late last week as we said it was our intention soon to re-buy that which we had sold, we’ve failed to do so,” he said.
Original source
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