Tuesday, September 24, 2013

Gartman: Gold Is The "Dumbest Commodity"

Anyone who tells you gold is a commodity and a "safe haven" is a "charlatan at best" and "a liar at worst," newsletter publisher Dennis Gartman told advisors and other professional investors this morning at the annual Inside Commodities conference in New York City. There is also a reasonable chance they are "a cheat,"

Gold is the "dumbest commodity" in history primarily because it is a currency, not a commodity, Gartman said. Commodities like coffee, copper, crude oil and sugar have practical uses; gold is used only in jewelry, which is hardly a necessity.

I'm not a gold bug. I don't like gold bugs.

Safe havens don't rise and fall in price by 2% or 3%. Silver frequently surges or swoons 5% "at will. If you want a safe haven, buy two-year Treasury notes.

On Oil:
There is plenty of $110 a barrel oil out there," he said. In the next five or ten years, we may find out "how much $50 or $60 a barrel oil is out there.