Monday, September 9, 2019

Dennis Gartman gives his take on QE, Gold and Silver

Dennis Gartman reflects his thoughts on QE and Precious metals such as Gold/Silver.

Money Printing
"The monetary authorities in Europe and Asia….  and eventually too here in the US… have no choice but to err upon the side of expansion and they haven’t any choice but to bring QE back and bring it back in size and duration."

"Certainly we are happy to see spot gold remaining at or near the psychologically important $1500/oz level and we’d of course preferred to see Euro-denominated gold trading above EUR 1360/oz… nothing untoward has been done to the charts in either case and so we sit tight, acknowledging the appropriate nature of the current consolidation and waiting patiently for it to run its course."

Gold ETF's
"Regarding the ETFs… which are so very important to the precious metals…GLD yesterday added 6.74 tonnes to its gold holdings and they are now to a level not seen since late May of last year."

Gold Silver Ratio
“Silver does seem to have taken the lead from gold as the Gold/Silver Ratio (GSR) has stabilized at or near to 88:1. We tend rarely if ever to trade silver here at The Gartman Letter (TGL) given its volatile nature, but a weakening GSR is truly one of the hallmarks of a precious metals’ bull market.”