GO
Loading...
Live at 2:30p ET
LINDSEY VONN
CNBC.com web-only interview
Downhill skier Lindsay Vonn

Dennis Gartman: Major Shift in Gold Trade

Dennis Gartman is widely followed for his keen understanding of commodities, especially gold. And he tells us the way he’s trading the precious metal has just changed.

“For the first time in a long time, I’d rather own the miners than bullion, or gold contracts or the GLD,” he says.

And that’s because Gartman, author of The Gartman Letter, has spotted a major shift in the gold trade.

“For the previous 4 to 5 years even as the spot price has climbed to new highs gold miners have deteriorated,” he explains.

But no more.

“Over the past few weeks as the gold market advanced, the gold equities – that is, large cap gold miners – performed better than bullion,” he explains. “I watch that sort of thing to see how efficient and how well entrenched the gold rally is.”

The action suggests that although the better trade had been long the spot price of gold, it no longer is. Now miners are about to outperform and the better trade is long gold equities.

If all that's confusing, another way to say it is -- Gartman is now more bullish of gold miners, which can be played long the GDX, than the spot price itself.

Posted by CNBC's Lee Brodie

Read More from Fast Money:

> Simple Strategies Behind Supersized Successes

> 10 Top Stocks for the Long-Term Investor

> Top Apple Related Stocks for 2012





______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com 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 fastmoney@cnbc.com.


Trader disclosure: On June 19, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long WMB; Joe Terranova is long SJM; Joe Terranova is long UPC; Joe Terranova is long WFM; Joe Terranova is long LPX; Joe Terranova is long SNDK; Joe Terranova is long IBM; Joe Terranova is long HYG; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long CNX; Karen Finerman is long AAPL; Karen Finerman is long BAC ; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long M; Karen Finerman is long CVS; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long MSFT; Brian Kelly is long AAPL; Brian Kelly is long BAC; Brian Kelly is long PNC; Brian Kelly is long JPM; Brian Kelly is long WFC; Brian Kelly is long MSFT; Brian Kelly is long AMAT

For David Pogue
Nothing to Disclose

For Drew Matus
Nothing to Disclose

For Caroline Levy
Neither analysts nor their household members/associates may have a financial interest in, or be an officer, director or advisory board member of companies covered by the analyst unless disclosed herein.
The analysts included herein hereby certify that the views expressed in this research report accurately reflect their own personal views about the securities and/or the issuers and that unless disclosure otherwise, no part of their compensation was, is, or will be directly or indirectly related to the specific recommendation or views contained in this research report or revenue from investment banking revenues.

The analyst(s) of this report hereby certify that the views expressed in this research report accurately reflect my/our own personal views about the securities and/or the issuers and that no part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendation or views contained in this research report.

For Dennis Gartman
Dennis Gartman is funds long CANADIAN DOLLARS
Dennis Gartman is funds long AUSTRALIAN DOLLARS
Dennis Gartman is funds long GOLD
Dennis Gartman is funds long S&P 500 INDEX
Dennis Gartman is funds long WHEAT
Dennis Gartman is funds short EURO
Dennis Gartman is funds short YEN
Dennis Gartman is funds short CORN

For Andy Barish
I, Andy Barish, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report: SBUX

CNBC.com with wires.

Symbol
Price
 
Change
%Change
GD
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report