Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Commodities King Gartman Says Gold Soon Reach $1,400 As Drums of War Grow Louder

Commodities / Gold and Silver 2017 Sep 25, 2017 - 04:10 PM GMT

By: GoldCore

Commodities

– ‘Commodities King’ Gartman sees $1,400 gold surge in months
– “Gold is the one currency that will do the best of all…”

– Pullback below $1300 “is relatively inconsequential”
– Use gold price weakness to be a buyer “no question”

– Bullish on gold due to central banks and easy monetary policy and gold will be even higher in euro terms
– Gold will be the best of all, as a result of QE and expansionary policies
– Dalio reconfirms belief that ‘gold serves a purpose’ and portfolios should have exposure
– ‘Gold is a diversifying asset’ says Dalio
– Own allocated, segregated gold in Zurich or Singapore


Editor Mark O’Byrne


Dennis Gartman has called 2017’s gold rally and he is now forecasting gold will be “demonstrably higher” rising to $1,400/oz in the coming months and rise by even more in euro terms.

In an interview on CNBC, he said that the recent correction in gold is but a mere pullback prior to much higher prices and “gold is the one currency that will do the best of all.”

Earlier this year Dennis Gartman, of the Gartman Letter, successfully called this year’s gold rally. In the year-to-date the precious metal is up by nearly 13%, thus outperforming the S&P 500 which is 12% higher.

“A year from now, gold will be demonstrably higher than it is right now…I would certainly think we could see $1400 [an ounce] in dollar terms.”

Gartman’s prediction comes a few days after another respected investor, Ray Dalio, called for gold to be held in portfolios.

Both Gartman and Dalio encourage gold investment as they believe it is an excellent diversifier and will be among the best performing currencies.

Their comments came following an intense week both political and economic developments, across the globe.

Signals from central banks – nothing to see here?

Last week the U.S. Fed made clear that it is still on track to raise interest rates by the end 2017.

Gold stumbled as tighter monetary policy is seen to raise the opportunity cost of holding bullion.

This is not a cause for concern, says Gartman:

“This is a correction but let’s understand the last rally that we had took off from $1200 to $1370. The fact that we’ve fallen back below $1300 I think is relatively inconsequential,”

Why is Gartman so bullish on gold?

“The monetary authorities are all still remaining expansionary…In that instance, the one currency that will probably do the best of all is gold.”

Gartman says this despite the announcement by the U.S. Federal Reserve and previous comments from other central banks. Clearly, he argues, balance sheet unwinding is not going to happen immediately.

“[It] is going to take five or six years. This is not something that will occur overnight,”

As we explained last week following the Fed’s announcement, the plan to hike interest rates and reduce the size of its balance sheet does not make for a happy ending.

According to 100 years’ worth of data (provided by Incrementum Capital Partners via Frank Holmes), increased rates and a reduction in the balance sheet has historically preceded recessions.

A recession would likely kill the business cycle. Frank Holmes explains why this makes a case for holding gold in your portfolio:

Gold has historically shared a very low to negative correlation with stocks. Consider 2008, the height of the financial crisis: US stocks ended the year down more than 37 percent, while gold held its value, returning 3.4 percent.

So it is not surprising that Dennis Gartman remains bullish on gold. For the next five-to-six years the Federal Reserve, along with the Bank of England and European Central Bank (to name a few), will be seeking to do the impossible – undo all of their decade-long decisions without screwing up the economy even more.

The case for gold is clearly strong in the long-term, and just as much so in the short-term thanks to a certain ‘dotard’ and ‘Rocket Man’.

North Korea thinks Donald Trump is mentally deranged…

“Just heard Foreign Minister of North Korea speak at U.N. If he echoes thoughts of Little Rocket Man, they won’t be around much longer!” 

Whilst markets’ concerns over North Korea have apparently lessened over the weekend, the last week has been full of machismo demonstrations from both sides.

Gold had a bit of a take-down following the Federal Reserve meeting however North Korea’s threats to test another hydrogen bomb, promptly increased support for the safe haven.

President Trump unimpressed UN attendees last week, referring to Kim Jong-Un as a the ‘Rocket Man on a suicide mission’. In response the North Korean Foreign Minister told the UN Trump was “mentally deranged person full of megalomania” and also on a “suicide mission”.

The U.S. decided a fly by of U.S. bombers would be a good way to demonstrate ‘strength’ whilst the North Koreans marched on Pyongyang against President Trump.

Gold plays a significant role during times of political and economic uncertainty. Whilst many argue that the war-of-words between the US and North Korea is nothing new, this is the first time we have seen actions escalate to this level.

Those who believe this is nothing new are perhaps assume things will ease off between the American ‘dotard’ and the North Korean despot.

When you look back at various events between 1976 and 2009 that have prompted a cause for concern for regarding North Korea, the gold price has declined.

This year however we have seen the price rally. This is because there are many positive factors in the gold market but also because the stakes are higher.  With each tweet, statement, military demonstration and rocket test, the uncertainty increases significantly.

We have not been in a situation when a U.S. President is able to broadcast his thoughts with immediate effect to the world (including his enemy). Nor have we ever known North Korea to have the military capabilities it is so keen to demonstrate.

Gold thrives on uncertainty.

We are certain about the uncertainty 

We are at an interesting juncture.

Data tells us that it is highly unlikely that central banks will successfully unwind without causing harm to the global economy.

Data also tells us that gold performs well as a safe haven during times of war and geopolitical upheaval.

However, there is no data to tell us how everything will play out. This is where uncertainty comes in.

Central banks are going to start unwinding, but we do not know how badly it will go wrong. North Korea will continue to try to destabilise the region and the U.S. but we do not know how far they will be allowed to get.

Gold will perform well in the coming months. If you want to be certain of its protection in a world of uncertainty, then you should own physical gold – allocated and segregated coins and bars – in the safest vaults, in the safest jurisdictions in the world.

Important guides to storage in Singapore and Switzerland:

Essential Guide to Storing Gold In Singapore
Essential Guide to Storing Gold In Switzerland

Gold Prices (LBMA AM)

25 Sep: USD 1,295.50, GBP 957.89 & EUR 1,089.26 per ounce
22 Sep: USD 1,297.00, GBP 956.15 & EUR 1,082.09 per ounce
21 Sep: USD 1,297.35, GBP 960.56 & EUR 1,089.00 per ounce
20 Sep: USD 1,314.90, GBP 970.53 & EUR 1,094.79 per ounce
19 Sep: USD 1,308.45, GBP 969.30 & EUR 1,091.25 per ounce
18 Sep: USD 1,314.40, GBP 970.16 & EUR 1,100.68 per ounce
15 Sep: USD 1,325.00, GBP 977.32 & EUR 1,109.16 per ounce

Silver Prices (LBMA)

25 Sep: USD 16.95, GBP 12.57 & EUR 14.27 per ounce
22 Sep: USD 16.97, GBP 12.52 & EUR 14.18 per ounce
21 Sep: USD 16.95, GBP 12.58 & EUR 14.24 per ounce
20 Sep: USD 17.38, GBP 12.84 & EUR 14.48 per ounce
19 Sep: USD 17.15, GBP 12.70 & EUR 14.31 per ounce
18 Sep: USD 17.53, GBP 12.94 & EUR 14.66 per ounce
15 Sep: USD 17.70, GBP 13.03 & EUR 14.81 per ounce

Mark O'Byrne

Executive Director

This update can be found on the GoldCore blog here.

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W http://www.goldcore.com/uk/

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information containd in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in