The veteran economist, Dennis Gartman, who is now editor and publisher of The Gartman Letter following a long career in the banking sector, says the prices we are seeing this week are just the beginning of what could be an epic new era for gold.
Gartman has been expecting gold prices to set a new record high, with yesterday’s £1,693 ($2,172) peak just the tip of the iceberg of what we could see in the coming months.
He said, “The game has changed. The stock market is ridiculously overvalued; it would be comical if it weren’t so serious. The fact that you’ve had such weakness… and gold has held its own, that’s impressive, and you have to pay attention to it. This is an impressive breakout of real consequence for gold.”
The economist’s appraisal of gold’s potential isn’t based simply on the immediate prospect of interest rate cuts. Instead, he says that the growing US deficit will be a long term driver of higher gold prices. The debt mountain is currently growing at the rate of around one trillion US dollars every one hundred days.
“From here on out, as the debt becomes more and more egregious, the Fed will be the only logical long-term buyer, so the Fed’s balance sheet will go back to nine billion over the course of the next several years, and that will be the driving momentum to take gold to £2,337 ($3,000) an ounce or higher.”
Gold has never held more allure than it does right now. You can’t afford to wait for prices to spike even higher. Act today. Buy gold now.
