What's the best way to own gold? In Euros of course.
Why it is that we are bullish of gold in EUR terms above all other methods of buying gold? We tutor from the charts of spot gold in hourly terms going back to early June and of the EUR, also in hourly terms and also going back to early June. We have taken the liberty of drawing a heavy red line joining the opening price in early June and the prices late yesterday, hoping to make clear the trends involved here. Clearly, it seems to us, gold in US dollar terms is rising, and perhaps just a bit less clearly, the EUR is falling. It is only reasonable; indeed it is only rational, to wish to use EURs to fund a purchase of gold if the EUR is quietly but continually weakening relative to the dollar. Gresham’s Law is at work here: bad money drives good money out; the EUR is driving the dollar out and purchases… of gold, of equities, of crude oil, of grains… should be effected with the EUR and not with a strengthening dollar
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