This morning’s Gartman Letter is all about gold.
Mr. Gartman predicts that we’ll soon see a “rather severe” sell off of gold from legacy central banks of Europe to fund the oft-rumoured European Monetary Fund or EMF.
And it doesn’t stop there. China has no intention of buying gold on the open market. He quotes an anonymous official, saying:
“It is not feasible for China to buy IMF gold as any purchase or even intent to do so would trigger market speculation and volatility.“
China must, under any circumstance, suggest it is interested in buying gold. It would no doubt trigger a huge swing in the commodities market. Gartman suggests that in the future, China will boost its reserves to level up to other central bank averages.