Dennis Gartman Explains The Action In Gold (GLD, GDX, GDXJ)

Dennis Gartman said on CNBC's Fast Money that he is bullish on gold. He explained that when stocks decline like they did today, investors start to look for liquidity. This is the reason why gold struggled to make significant gains today. Dennis Gartman added that it is possible for gold to trade higher in the deflationary environment. Gold traded higher in 1930s, and back then U.S. was facing deflation too. Mr. Gartman added that he is not a gold bug, but money has to go somewhere, and gold is a logical choice. He also said that the stock market can't go up when the government is raising tax and making spending cuts. Gold mining stocks are not the best way to own gold, because you don't want to worry about strikes and other troubles that could happen. That is why Dennis Gartman does not recommend Market Vectors Gold Miners ETF GDX and Market Vectors Junior Gold Miners ETF GDXJ. The best way to play gold is with SPDR Gold Trust (ETF) GLD, thinks Dennis Gartman. GDX and GDXJ fell 2.66% and 4.42% today, while GLD gained 0.15%. See Some of the Top Moving Indexes Here.