Dennis Gartman Is Buying Gold, Should You?

Famed commodities investor and writer of the "Gartman Letter," Dennis Gartman has been adding to his gold position, so should you? Gartman has been adding to his position by buying the precious metal, and shorting the euro, British pound, and the Japanese yen. Gartman said that the British pound has been breaking down, while gold in U.S. dollar terms has been breaking higher. Gartman has also said that crude is going higher, and he has turned bullish on oil, reversing his position. Gartman turned bullish on oil yesterday, saying the “game has changed materially” after the OPEC meeting this week. During the OPEC meeting on Wednesday, the OPEC officials could not come to an agreement on a production raise, and the quota remained the same. Oil spiked on this news, as it was unexpected. It is hard for retail investors to buy gold in terms of gold, so buying gold the way Gartman is doing it is difficult unless you have a large account with a large multinational investment bank. Investors can still perform the trade, going long gold. Traders can either go long a gold miner, such as Barrick Gold

, or the gold ETF, SPDR Gold Trust ETF

. They can also short the above currencies, in a pairs trade, by shorting these specific currency ETF's, CurrencyShares Euro Trust

, CurrencyShares Japanese Yen Trust

, and CurrencyShares British Pound Ster. Trst

. This trade is designed to give the same movement that Gartman has done by buying gold in terms of these currencies. To follow Gartman's advice by going long oil, traders can invest in the United States Oil Fund

, United States 12 Month Oil Fund, LP

and other oil related equities.