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UPDATE - Halftime Pt. 2: Gold to Hit New Highs?

Gold will likely hit new highs, said commodities trader Dennis Gartman while speaking on Tuesday's "Fast Money Halftime Report."

Gartman said there are concerns raised that the monetary authorities could be too aggressive in adding reserves and monetizing debt. The euro experienced pressure because of disregard for the bank stress tests throughout Europe. It bounced, but is heading down. Gold, therefore, has become the third largest reservable asset in the world behind the US dollar and euro.

*It's worth noting that during Fast at 5p Gartman returned to talk more about the gold trade and said expressly, "I'm not waxing terribly enthusiastic. I wouldn't throw caution to the wind and buy gold here."

In other words, he believes gold will go higher but also thinks there are better places to put money to work.

In June, Gartman thought gold would make a parabolic move higher. The G20 summit had just concluded, where leaders fell back onto the "Sinatra doctrine," meaning each country would adopt its own method of dealing with the European debt crisis. With uncertainty over how this would work, Gartman thought gold would push higher. Gartman also explained that moves in commodities tend to fall into patterns and he thought he'd identified one.

A few weeks later, Gartman admitted he was wrong. Gold was falling relative to the euro and Britain's pound. Non-growth in the monetary base and concerns over deflation also affected gold, he said.

On Tuesday, Gartman also said there might be more upside opportunity on silver. If you don't believe in a double-dip recession and think China will continue to produce automobiles, there will be demand for white industrial metals, he said. Cars need platinum and palladium. There could also be increased demand for silver, as it's an industrial metal.

What's the Trade?

Steve Cortes, founder of Veracruz, likes the white metals trade. He noted that silver has been dramatically outpacing gold over the past few weeks, which indicates a pickup in industrial demand.

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CALL TO THE FLOOR: KANSAS CITY

Rails continue to show strength amidst an otherwise slow economic recovery. Kansas City Southern is proving that the rails are remaining on a strong run with increased shipment volumes and strong earnings. Speaking on Tuesday's "Fast Money Halftime Report," CEO Michael Haverty said August was their best month since October 2008 and the second-best month in three years.

The company has been working with two different trucking companies on getting trucks onto the rails, which has worked to their benefit. They're also continuing to invest in Mexico, where he said US manufacturing jobs are being exported to.

Watch the videoto see the full interview with Haverty.

What's the Trade?

Joe Terranova, chief market strategist at Virtus Investment Partners, likes Canadian Rails.

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CALL THE CLOSE

Jon Najarian, co-founder of optionMONSTER.com, doesn't think we'll see a continuation of bad economic data out of German. He remains a buyer on the dips.

Patty Edwards, president of Storehouse Partners, recommends buying platinum.

Steve Cortes, founder of Veracruz, would play construction in Asia with EWH.

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Trader disclosure: On September 7, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Cortes owns (SFD), (BMO), (TD), (FCX), (BHP); Cortes owns the British Pound; Terranova Owns (APA), (AAPL), (BMO), (FCX), (GS), (IBM), (MRVL), (QCOM), (OXY), (ORCL), (SU), (XBI), (C), (POT), (GLD), (TBT); Jon Najarian owns (ORCL) short calls; Jon Najarian owns (X) short calls; Jon Najarian owns (AKS) short calls

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