After moving to the sidelines earlier in the month, on Friday, commodities investor Dennis Gartman said it's time to take the plunge and go long gold.

“I’ve been out of gold

GCCV1 loading...

Quote  |  Chart  |  News  |  Profile

[GCCV1  Loading...      ()   ] for a period of time but I’m pulling the trigger – I want to come back to gold.”

Gartman’s call is both technical and fundamental.

(GCCV1) Loading...       (%)

Looking at the technicals, he likes the price action. “Gold consolidated for two weeks, but it just sat there; it didn’t give anything back. That means resistance that might have been a ceiling has been taken out.”

And Gartman says the fundamentals are bullish, too. Specifically, he expects demand to increase as investors seek the yellow metal as an alternative reserve currency. “What the Fed has done,” he explained, “and what the ECB must do will support gold relative to other currencies."

“Monetary authorizes have made it clear they’re expanding supply reserves in the system – respond accordingly.” 

It's worth noting, if you’re a nimble money pro, Gartman suggests playing the theme in euro terms. (In other words, a long position in gold versus a short in the euro

EUR%3dX loading...

Quote  |  Chart  |  News  |  Profile

[EUR=X  Loading...      ()   ].)

“I think gold goes to 1400 versus euro, that’s an 8% move higher," he says.

However, if you're an individual investor, Gartman thinks it's perfectly fine to establish a long position in dollars. "It probably gains about the same in dollar terms,” he adds.

-----------------------------------------------------------

NEW SLIDESHOW: The Top Secrets of Pro Traders

-----------------------------------------------------------

And if you're thinking about buying the gold miners

GDX loading...

Quote  |  Chart  |  News  |  Profile

[GDX  Loading...      ()   ] on this thesis - Gartman has some thoughts -- don't do it !

“Make a pure bet, buy the metal” he says,. "If you buy miners you can walk in and find out the company had a labor problem or the mine flooded.  Miners will eventually outperform but I’d make the pure bet.”

What do you think? We want to know!

 

FAST MONEY // Latest Rapid Recap

Go to Main Page

 

Current DateTime: 02:50:02 23 Feb 2012
LinksList Documentid: 26256943

• • MGM CEO Betting On Macau, Vegas, Social Media
  • Fast Money Opportunity but Only if You're Nimble
  • Pete Najarian: Hewlett-Packard a Long-Term Play
  • Europe Crisis Fueling Currency Trades, Pro Says
  • Dazzled by Dow, Will Investors Miss This S&P Warning?
  • As Dell Sells-Off, Guy Adami Prepares to Pull Trigger
  • Wall Street History: NYSE Stock Still Around from G. Washington Era
  • Can Goldman, JPMorgan Weather Moody’s Downgrade?
  • Amazon Stock Price Still Cheap, Steve Grasso Says
  • Your Questions About…. Apple, Euro and Gold

Current DateTime: 02:50:02 23 Feb 2012
LinksList Documentid: 26256941

• Super Traders Slideshow
• Daily Poll: Tell Us What You Think!
• Word On The Street

______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to .

Trader disclosure: On Jan 27, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns WFT; Grasso owns XLU; Karabell is long HON; Karabell is long CAT; Karabell is long QCOM; Karabell is long BIDU; Karabell is long VMU; Karabell is short JCP; Karabell is short XLF

For Steve Grasso
Stuart Frankel & Co and it’s partners own CSCO
Stuart Frankel & Co and it’s partners own CUBA
Stuart Frankel & Co and it’s partners own GERN
Stuart Frankel & Co and it’s partners own HPQ
Stuart Frankel & Co and it’s partners own HSPO
Stuart Frankel & Co and it’s partners own MU
Stuart Frankel & Co and it’s partners own NYX
Stuart Frankel & Co and it’s partners own PRST
Stuart Frankel & Co and it’s partners own WFT
Stuart Frankel & Co and it’s partners own XRX

For Patty Edwards
Trutina Financial is long GLD
Trutina Financial is long PGM
Trutina Financial is long INTC
Trutina Financial is long T
Trutina Financial is long SBUX
Trutina Financial is long NOV
Trutina Financial is long SBUX

For Adam Jonas
(F) The following analysts hereby certify that their views about the companies and their securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Adam Jonas.

For Jim Mccluney
No disclosures

For Willie Williams
No disclosures

For Jeff Klinefelter
A Piper Jaffray officer, director, or employee (other than a research analyst who follows J. C. Penney Company, Inc.), is an officer and/or director of J. C. Penney Company, Inc.
Piper Jaffray beneficially owns 1% or more of a class of common equity securities of J. C. Penney Company, Inc.
Piper Jaffray usually provides bids and offers for the securities of J. C. Penney Company, Inc. and will, from time to time, buy and sell J. C. Penney Company, Inc. securities on a principal basis.

For Dan Dicker
Dicker is long RIG

For Dennis Gartman
Gartman is long gold

For Anthony Scaramucci
Scaramucci is long C
Scaramucci is long BAC
Scaramucci is long GD
Scaramucci is long BDX
SkyBridge Capital Is A Fund Of Funds Manager
Anthony Scaramucci is one of 8 national finance chairs for Mitt Romney campaign
Held a fundraiser for Mitt Romney
Has contributed to the Romney campaign



CNBC.com with wires.