The “Bloom” Is Off Dennis Gartman’s “Rose” – Ignore Him On Gold

TND Guest Contributor:  Dave Kranzler |

I have always had the impression that Dennis Gartman was nothing more than a manipulative outlet for a few big hedge funds.   His appeal caters to “high net worth” retail investors and “low level” professional/institutional investors.  He’s the perfect “stool pidgeon” for hedge funds who want to move a bad position or accumulate a potential winner by getting Gartman to promote the opposite of what these hedge funds are trying to do (the strategy for which Goldman is know and for which Bill Gross was known in his “hey-day” at Pimco).

The most recent example of this is with regard to the recent news that Stanley Druckenmiller took down a $300 million-plus position in gold via GLD during Q2.  Gartman reported on Friday that:   “One should be careful about Mr. Druckenmiller’s positioning in gold, for we were told yesterday by one or two others that he’s already liquidated his gold position into last week’s strong advance.”

Anyone who has observed Druckenmiller since his early days running Soros’ main hedge fund knows that Druckenmiller takes highly concentrated, long term macro bets.  He wouldn’t put on a massive GLD position and then turn around and sell it a week or a month or even a few months later just to scalp a few points.  He’s playing for a least 50% here and likely a double or triple.

This is an example of how Wall Street criminals spread rumors to influence directional trading – in this case to try and trigger gold futures selling.  Gartman is always used as  Wall Street’s “punching bag” for this purpose.  His latest behavior based on his market commentary and his constant shifting in and out of stocks and gold is revealing once and for all that he’s nothing but a “weather vane” which is controlled by the direction blowing of a few big hedge funds.

It’s more likely that the “smartest” money is accumulative large positions in gold ahead of some event or catalyst that will trigger the next big upleg in gold – likely accompanied by another big sell-off in the stock market.   Goldman has been mysteriously taking delivery of a lot of gold on the Comex,  Druckenmiller took down and big position in GLD and likely is buying physical gold out of the sight of SEC 13-D filings, gold is in backwardation on the LBMA and premiums for buying and taking delivery in the physical are starting to soar.

“The lady doth protest too much, methinks” (Shakespeare).  The anti-gold and silver propaganda flooding the mainstream is perhaps the biggest tell-tale that something is going on behind the scenes in the precious metals market.   If we’re all still standing a few years from now we’ll look back at the Wall Street Journal’s “Pet Rock” article as the signal that investors should have been converting as much fiat currency into physical gold as possible as soon as that WSJ article hit the Street.  Oh wait, China is and has been doing that.

My best idea right now from a risk/return standpoint in the mining stock sector is up over 2% today.  My last best idea, Silvercrest Mines (SVLC) is being acquired by First Majestic.   My mining stock report on current “best idea” explains why I believe this Company will not be stand-alone by next August.  This is especially true if gold starts to move up, as this Company has a lot of proved gold in the ground in two prolific gold mining districts.

You can access this report here:   DE-RISKED JUNIOR GOLD MINER or in combination with my 2nd best risk/return idea for a special Two-Report Discount Package.   I added a technical analysis report of the gold miner from DenaliGuide’s Summit last night.

In the meantime, this was just too funny not to share, it reminds me both of the idiocy of the Fed and the silliness of Dennis Gartman:

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About Dave Kranzler:

 I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics.  Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.

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