Tags: Gartman | gold | China | Cyprus

Dennis Gartman: ‘Panic Is Everywhere’ in Gold Markets

Monday, 15 Apr 2013 12:14 PM

By Michael Kling

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Gold prices are falling fast, alarming investors.

“There are a lot of people throwing up their hands — throwing positions overboard. Panic is everywhere,” Dennis Gartman, editor and publisher of The Gartman Letter, told CNBC.

“I’ve never seen anything like this. I mean it.”

Editor's Note:
Get David Skarica's Gold Stock Adviser — Click Here Now!

Gold fell below $1,400 on Monday, the lowest since March 2011 and 20 percent off its peak.

Speculators worry that Cyprus will have sell gold reserves to help pay for its bailout, Gartman noted.

“I think it would be unfair to force the Cypriots to sell and not to have others do exactly the same thing,” he said. “I expect Spain and Portugal, Italy will also be rumored to do it, and that’s weighing on prices.”

Stocks of gold mining companies fell around the globe, CNBC reported. Kingsgate Consolidated, an Australian firm, and Beadell Resources, dropped 15 percent. Newcrest Mining, fell 8 percent. In China, Zhongjin Gold was down 6.5 percent, and Zhaojin Mining was down 9 percent. Randgold Resources fell 7.2 percent, while Lonmin and Kazakmys were both down over 6 percent in the United Kingdom.

Citigroup put a sell rating on all but one U.K. gold miners.

But Jonathan Barratt of Barratt’s Bulletin, which focuses on commodities, called the drop a “significant over-reaction” and said it offers a buying opportunity, according to CNBC.

“For the amount of money that’s going into the system,” he said, “you have to take a longer-term view that stimulus will support gold prices.”

Lower-than-expected gross domestic product figures from China prompted fears that the Chinese would be able to buy less of the precious metal, according to The Wall Street Journal. A Goldman Sachs recommendation to short gold certainly didn’t help gold values either.

“The final straw came on Friday with the mere suggestion that the eurozone’s bailout candidates could help pay their own way by selling some of their own gold,” Andrew Wilkinson, chief economic strategist at Miller Tabak & Co., told The Journal.

“There is no real culprit in the demise of gold other than massive liquidation amongst all of those who believed that concerted actions by central bankers around the world would stoke inflation,” Wilkinson said.

“The lack of evidence pointing to monetary price instability has left them wanting, yet worse still, searching desperately for a bigger fool to buy the same redundant argument.”

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

S&P 500 Sets New High as Wall Street Enjoys Best Month Since February

Friday, 29 Aug 2014 17:12 PM

U.S. stocks rose Friday, finishing the biggest monthly gain since February, amid improving economic data and speculation . . .

BRIC Wall: Brazil's Economy Slips into a Recession

Friday, 29 Aug 2014 16:24 PM

Brazil's formerly high-flying economy, once the darling of emerging markets, has fallen into recession, according to gov . . .

US Crude Oil Caps First Weekly Gain in Six on Economy

Friday, 29 Aug 2014 16:08 PM

West Texas Intermediate crude capped the first weekly gain in more than a month on speculation an improving U.S. economy . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved