The important points raised beloware highlighted.
At the same time, Gartman saidthat as geopolitical tensions continue to rise, there is a growing possibilitythat the U.S. government could weaponize the U.S. dollar against potentialnations seen as bad actors.
“TheU.S. government is looking at outright confiscating Russian funds, and if theydo it once, they will do it again,” he said. “Some governments are seeing this threatand continue to move away from the U.S. dollar. Right now, the only alternativeis gold. I expect we will continue to see central banks around the world continue buying gold. This has only just started.”
Gartman said that if China wants the yuan to compete withthe U.S. dollar as a global currency, it needs to hold at least 20% of itsreserves in gold. Even after buyinggold for 17 straight months, its gold holdings represent slightly more than 4%.
Thefinal reason why Gartman is bullish on gold is that despite this rally,investors continue to ignore the precious metal. At the same time, investorsare also ignoring the mining space, whichhas yet to see any significant gains even as gold trades in rarified air.
