Dennis Gartman told Bloomberg Surveillance on Wednesday that he is “social distancing” in the gold market, also included that tumbling stocks may be a catalyst to get another gold sell-off.
The investor and former writer of The Gartman Letter said he is “impartial in gold.” While he explained in April that “is the time to buy gold,” he now thinks the marketplace for its precious metal has gotten too crowded.
“Too many folks all the sudden are included in the gold industry. There is just 1 place everybody has and that is long … people must be taken from the commerce,” he explained.
Gold closed at a record high of nearly $1,960 per ounce on Tuesday. Gartman said he’d return as a purchaser if the price declined “$100 from some other interim high.”
Read : GOLDMAN SACHS: Purchase these 26 stocks today to crush the marketplace as a ‘overvalued’ dollar continues to weaken in the months ahead
Gartman also explained a weakness at the stock marketplace might be a catalyst to get a golden sell-off. This goes contrary to the traditional belief that stocks and gold have a reverse relationship. “For the last several months they have been moving in traditional with every other … as gold moves up thus have stocks … that consistency between both will continue for a whole lot more … so if stocks begin to fall you are going to find a correlative sell-off from the gold market,” he explained.
Gartman called stocks “costly” and proposed selling equities. “If you are excessively vulnerable, I believe being marginally less vulnerable following a 38% rally in the Nasdaq likely makes sense to take some of it off the desk, lift a bit cash.”
Gartman further suggested a less accommodative Fed, a “remark from a national official,” or a turnaround into a stronger dollar may also spark a golden sell-off.
Read : A expert shares how to Start at real-estate investing and earn passive income