Dennis Gartman: Insights on Gold, Euro Schisms, and a Rebound for the USD/Euro Index as Summer Draws to a Close

“The problem with gold,” says Dennis Gartman, author of the Gartman Letter, “is that it's been a wonderful trade.” In a

, Gartman recommended gold in Euro terms as the hottest trade for the summer ahead. But when a currency risk hedge climbs charts as rapidly as gold has since May, the masses eventually rush in and ruin the party. In his

with Benzinga Radio, Gartman lamented: “I can't turn on CNBC, Bloomberg, or Canadian business television without somebody telling me how brilliant the gold-in-Euro trade is. It's become awfully crowded. I'm not going to go there any more.” Gartman is no doubt seeking his next hedge against the Eurozone's systemic debt crisis, which remains a significant source of anxiety for markets. Gartman is confident that the Eurozone's days are numbered. The currency union's killing blow will come from Germany, he predicts: “Simply put, the problem [in Europe] is that hard-working, fiscally responsible Germans are not going to continue to pay for profligate, vacation-taking Greeks. The Germans have had it up to here with the costs that the Eurozone is bringing them.” Gartman's statement epitomizes the issue at the heart of any supranational monetary union: reconciliation between the stronger economies and the weaker ones. These ongoing Euro woes will drive the EUR/USD index higher in coming months. Watch for strong performance in American stocks as well, despite troubling unemployment figures.