Tags: gartman | metals | prices

Gartman: Metals Prices Point to Recovery

By Dan Weil   |   Thursday, 16 Apr 2009 10:15 AM

Investment guru Dennis Gartman says the rise prices of base metals like copper, zinc, and lead signals good times ahead for the economy.

“When you put all of the base metals together and see all of them rising together in anticipation of a stronger economy, they have a PhD in economics,” he tells Bloomberg TV.

“They are very good leading economic indicators. It’s very rare all base metals will rise, unless some growth is coming along. And that’s what’s happening now.”

Base metals led the economy on the downside last year, Gartman says.

“Now we are starting to see base metals rise long before the data we eventually will see showing strength globally.”

On the currency front, Gartman says he is long the Canadian dollar, the Australian dollar, and the New Zealand dollar. Meanwhile, he is short the yen.

“I want to own the currencies of the young, commodity-exporting countries and want to be short those of older, commodity-importing countries,” Gartman says. In his view, Japan is the oldest and biggest commodity importer.

“So far, the market is telling me that I’m right,” Gartman points out.

Others see trouble for the yen too.

"If U.S. earnings results show signs that the U.S. is pulling away from the worst of the economic downturn, risk appetite is expected to grow, putting pressure on the yen," Yoshihisa Kanzaki, a currency dealer at Shinkin Central Bank, tells Reuters.

© 2017 Newsmax. All rights reserved.

1Like our page
2Share
StreetTalk
Investment guru Dennis Gartman says the rise prices of base metals like copper, zinc, and lead signals good times ahead for the economy. “When you put all of the base metals together and see all of them rising together in anticipation of a stronger economy, they have a PhD...
gartman,metals,prices
234
2009-15-16
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved