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Gold bugs point to the precious metal as a safe haven. But gold is hovering near $1,540 and is well off its 52-week high of $1,918.Dennis Gartman, investor and publisher of The Gartman Letter, says gold is just another “entity of trade” that rises and falls.
“Save havens do not fall 7% in two weeks as gold in dollar terms has done. Save havens do not fall 3.6% in two weeks as gold in EUR terms has done.
Safe havens are safe. Safe havens are stable; gold is not safe and certainly it is not stable and to think otherwise is to learn a very serious lesson in the course of the past two weeks.”
Gartman says he is long some gold as part of his “Armageddon” position and a hedge against the small possibility of a collapse in the global banking system. The political uncertainty in Greece and JP Morgan’s $2 billion loss has raised the risk a little but for now he says, “we are agnostic regarding gold.”
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