Dennis Gartman Unveils A New Trade


This was getting some attention today.

Dennis Gartman has unveiled a long gold/short pound trade, following his long gold/short yen trade.

With the UK economy starting to break down amid a austerity and stagflation, this is kind of interesting:

Terms and One in Sterling terms. As noted here last week, we bought gold in Yen terms, having sold Yen against the dollar and having bought gold leaving us long of gold in Yen terms. Two units seemed reasonable.

Too this trade, which was originally gold in Yen terms, on Friday we bough gold in Sterling terms, one unit being sufficient to begin with at the time, having done so upon receipt of this commentary.
As we write, gold is trading £901.35 (gold is $1471.50 and Sterling is 1.6325, so do
the maths!).