LONDON (Scrap Monster): The editor of The Gartman Letter, Dennis Gartman sees gold going up and to the right and there’s nothing on the horizon that seems to undermine that trend. There are now lower lows or trend breaks or death crosses to worry about now.
My view is that, as long as currency and even government bonds, including longer duration ones, are sporting negative real yields, there is no opportunity cost to holding gold and other precious metals as an asset class, he added.
If you think of gold and precious metals as currency, then they should retain value better in periods of financial repression that erode the real value of fixed income financial assets and currency equivalents, Gartman noted.
In my view, that’s the reason to look to real assets as a store of value. If you think the world’s central banks are going to be keeping real yields low or negative, expect real assets to benefit, Gartman concluded.
Global gold prices are trading near steady in early US dealings on Friday, as the market pauses following Thursday’s strong gains.
The gold and silver bulls remain in a strong technical posture. The key “outside markets”—crude oil and the US dollar index--are also trading not far from unchanged price levels Friday morning.
December gold last traded down $0.90 at $1,779.70 an ounce on the Comex division of the New York Mercantile Exchange. Spot gold was last quoted down $0.10 an ounce at $1,778.00. December Comex silver last traded up $0.019 at $34.685 an ounce.
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