Gartman Exiting Silver But Maintaining ‘Insurance’ Position In Gold

goingbroke

-Newsletter writer Dennis Gartman says he is moving out of silver but keeping an “insurance” position in gold. He points to a recent uptick in the gold/silver ratio, which he follows as a sign of either inherent strength or weakness in precious metals. The ratio measures the number of ounces of silver needed to buy an ounce of gold. The ratio normally falls when prices are stronger but rise when prices weaken, since silver is usually the more volatile metal. “The fact that the ratio has risen smartly is, to us, a very real bearish signal,” he says in The Gartman Letter. Gold could slip some more, but if so, silver could fall even more, he suggests. “We were rather aggressively bullish of metals until two and three weeks ago when we surprised everyone by reducing that exposure by 2/3rds, retaining what we now call our ‘insurance’ position in gold and silver,” he says. “The only change we wish to make is to reduce our exposure to silver entirely, ‘swapping’ silver for gold.”
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meluaufeet

This might be the best 'news' for the longs I've seen in two weeks...

I heard him on CNBC today saying he's ONLY holding an insurance position in gold so he doesn't hear the wrath of the gold bugs.

DoubleEagle59

I've never liked or followed Gartman.

He's way too arrogant and self-assured in his investing strategies.

percyb

<< <i>I've never liked or followed Gartman.

He's way too arrogant and self-assured in his investing strategies. >>



I concur. He's a fade.