(Kitco News) -Gold prices should be higher next year, but corn and the U.S. dollar should see dramatic gains, said an influential newsletter editor.
Dennis Gartman, editor of the newsletter, The Gartman Letter, said he�s most bullish on corn and the �English-speaking� currencies, including the U.S. dollar, but also the Canadian, Australian and New Zealand dollar, plus the British pound.
Gartman wouldn�t give a specific forecast for gold, only to say that he expected prices to be higher than they currently are a year from now, but not �demonstratively so.�
�I really don�t like to put numbers on things. If you say gold is going to $2,100 and it goes to $2,085, I�m telling you, you taken to the rack because you missed it. The best that you can do in this business is to get the direction right�. If you get the direction right 45% of the time you�re going to beat everybody else,� he said.
Gartman spoke to Kitco News Thursday on the sidelines of the Executives� Club of Chicago�s Annual Economic Outlook.
He said gold is still in a bull market, but right now he is holding a neutral stance. �There are only three positions you can take in a bull market: really long, long and neutral. Right now I think neutral is the place to be,� he said.
Gartman is famous for trading gold in currencies other than the dollar, which gold is denominated in. He frequently trades gold in euro and yen terms. To do so he has said that buys gold and simultaneously sells the other currency, trying best to match equal dollar sums on both sides of the trade.
�Too many people have thought of gold as being an anti-dollar trade. If it is, by buying it in euro terms, I�ve effectively hedged out the dollar risk. Quite honestly under most circumstances � not all � but on days that gold would get whacked, then the euro would get whacked. That has allowed me to breathe on down days in gold,� he said.
He told the audience at the Executive�s Club outlook panel that other markets he�s bullish on are corn, coal � both thermal and metallurgical � and dollars, whether U.S., Canadian, Australian and New Zealand, but did not elaborate.
He added that the U.S. dollar will be �dramatically higher� by next year and said it will remain as the world�s reserve currency, saying it�s �idiocy� not to think so. He said the U.S. military superiority guarantees that dominance. �No one else comes close to the U.S. defense capability,� he said.
He�s also very bullish stock markets, both U.S. and other stock markets, saying that the amount of fiscal stimulus via quantitative easing by the Federal Reserve and ultra-low interest rates in many other countries will benefit equities. When the moderator of the panel asked what his forecast for the Dow Jones Industrial Average would be in a year�s time, he said 16,500. It is now around 12,350.
He also told the Executive�s Club audience that he has no love for �gold bugs,� saying that they remind him of Ted Kaczynski, a recluse survivalist who was known as the �Unabomber� for his letter bombs than spanned 20 years. Gold bugs, he said, have their gold holdings, �dried food, water and live up in caves.�
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