Dennis Gartman is, like many others, long gold. The thing is, Gartman thinks buying gold strictly in U.S. dollars is a suckers bet. Today he emphasized his plan for buying gold in foreign currencies. The Gartman Letter: So many others in the markets scoffed at our strongly held thesis that we wished only to be long of gold in foreign currency terms… hedging away the “dollar risk” of owning gold solely in US dollar terms… that we feel a bit smug about the fact that gold is now trading so much better and is trading so much more consistently in our terms rather than theirs. We can actually “see” a situation where the dollar may rise and rise quite strongly relative to the EUR, Sterling and even the Swiss franc, and gold may actually rise too, for the problems attendant to Europe as the economies of Spain, Portugal, Ireland, Poland et al tear at the very seams of the European Union. It was only early December when gold in Sterling terms was trading £735, and at its worst, during the obviously powerful correction that gold underwent in December, it fell all the way to £675. From absolute best to absolute worst, gold prices in Sterling fell 8.2%. Gold priced in US dollars, on the other hand, fell 12.7%. In other words, owning gold in Sterling terms saved us a good deal of money on the downside, and now it is turning in our favour while reducing the intra- day exposures we have otherwise. We shall let others laugh at our focus on gold in EUR, Sterling and Yen terms; we know otherwise.

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