Gold's price is falling because of the Trump illusion as Dennis Gartman explains.
'Dennis Gartman says Don't Buy (equities) Stocks, Consider Gold (and oil)'
Because general equities stocks are at a high and a correction down
period is coming.
According to Dennis Gartman from the article below, Trump will
contradictorily be good for the economy but not the stock
markets.
ie
"ETF.com: From what I gather, you think Trump's agenda is going to be
bullish for stocks, but not as bullish as the market is anticipating.
Gartman: Mr. Trump's agenda is bullish for the economy, but not necessarily
bullish for stocks. That sounds illogical, but it's not illogical at all."
Continuing my preamble:
However if stagflation happens, which is recession with inflation propping
up of markets and budgets (ie not letting the equities' correction stay down
but reverse them back up and even higher with more QE money printing),
then (1) equities and (2) gold, silver and oil, can go up at the same time.
Perhaps gold, silver and oil can be the counter balance stocks to general
equities whether general equities fall and stay fallen, or rise along side of
gold, silver and oil, but not as much, in a stagflation market.
At least until the inflation propping up period of the equities markets and
budgets, lasts. Since inflation will become too penalizing in itself and have to
be stopped.
Then
the equities markets will fall, and more so than gold and oil, gold especially,
since the crises in the market system has been debased paper money
by QE money printing and low interest rates. And gold will stay up high if
not at the high inflation peak highs, until the world currencies are reset and
stabilized.
From
'Gartman: Don't Buy Stocks, Consider Gold
(and oil too from bottom of article)'
by Sumit Roy,February 28, 2017
https://www.etf.com/sections/features-and-news/gartman-dont-buy-stocks-consider-gold?nopaging=1 "New (equities stock) purchases are to be avoided; old purchases should
be hedged up (me- protective by other securities type buying) in some fashion
using derivatives or options; and bring stop orders up close behind the market."
me- Derivatives and options i'm not familiar with. Though he does mention
puts later in the article. Plus there are other securities you can buy that brokers
know about, when think the equities market will go down, and they go up on the
happening of that. Though I guess could buy gold and oil stocks as hedges
(protection), when the equities market goes down. Where blue chip of both, give
dividends, oil higher ones. Though if gold becomes part of the world basket of
leading currencies, blue chip gold stocks' dividends will go up. But generally
speaking, equities i'm not as familiar with. More so gold/silver stocks and silver
coins, in an ever increasing gold bubble.
me- In fact that is what Dennis Gartman says about gold too, it's entering a
bull market again, from article above - at the bottom close to where he says
to buy oil too:
ie
"ETF.com: In this environment, where stocks are overvalued and bonds go
down slowly, are there any assets you like right now?
Gartman: For the first time in a while, I think you should own commodities in
general. You should own gold in dollar terms; you should own gold in euro terms;
you should own gold in yen-denominated terms. Gold has started to be a bull
market.
Also, for the first time in almost four or five years, I'm actually bullish of the crude
oil market. Because (the oil dynamics have) shifted and crude oil prices don't
break on bearish news any longer, I'm starting to find myself turning bullish on
that commodity (too)."