Gartman On Gold: Hedge For Dollar Devaluation

The herd seems to be moving towards gold. Stocking up on silver hedges you from the same risk and limits your exposure to gold confiscation/restriction - as unlikely as that may be.

Gartman Says Buys Gold on Technicals, Dollar Fall
Mon Jul 20, 2009

NEW YORK, July 20 (Reuters) - Prominent independent
investor Dennis Gartman said on Monday he is now a buyer
in the gold market because of bullion's technical strength and
its status as a hedge against the U.S. dollar.

"Regarding gold, it has held, and as the U.S. dollar
weakens, gold is breaking out to the upside," Gartman said in
his daily Gartman Letter.

"We found ourselves becoming quietly supportive of gold
from a technical and from a dollar-devaluation perspective. The
fact that gold has traded nicely above $940 in Asian dealing
and that the bond market is weakening and that the energy
market is strengthening is forcing our hand," Gartman said.

Gold XAU= rallied above $950 an ounce on Monday, hitting
a five-month peak as a falling dollar spurred buying of the
metal.

Gartman has until Monday recommended a neutral position on
gold investment. Previously, he said that gold was relatively
expensive compared to a basket of agricultural commodities.