Gartman’s Top Plays for 2013 (Not Gold)

Selling gold stocks for a couple of different investments could be a winning bet for 2013, Dennis Gartman, editor of The Gartman Letter, said Monday on CNBC.

On "Fast Money," Gartman cited a recent chart he came across that showed the median cost of a house around the turn of the century was around 600 ounces in gold terms.

"It's only costing about 90 ounces of gold right now," he said. "Housing's cheap, gold's expensive."

Gartman also pointed to improvement in the housing market and consumer sentiment. "We might well see the housing market continue to do better.

"So I suspect over the next year, maybe what one wants to do is err on the side of being out of gold stock and long of housing stocks, given the fact that we've taken that housing-to-gold ratio from 600 ounces to 90 ounces," he said. "That's a big decline."

Gartman also revealed his top commodity pick: Cotton.

Falling from about $2 a bale two years ago to under 70 cents now means that farm acreage in the mid-South and possibly the High Plains could switch out of cotton and into corn and soybeans, he said.

Growth in China could wear down cotton inventories, pushing prices back up to "95 cents to $1 over the next year or two," Gartman added.

"So I think cotton, because it's gone sideways now for almost eight or nine months, built a base, doesn't want to go down, and the term structure, the nearby futures are gaining upon the deferred, which is something I always like to see," he said.

Trader disclosure: On Dec. 31, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long GDX; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long P; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is funds long C; Steve Grasso is funds long MSFT; Steve Grasso is funds long HPQ; Steve Grasso is funds long ZNGA; Steve Grasso is funds long JPM; Steve Grasso is funds long EBAY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is long XLF; Brian Kelly is long QQQ; Brian Kelly is long HONG KONG DOLLAR; Scott Nations is long BAC CALLS; Scott Nations is long BAC; Scott Nations is long C; Scott Nations is long YHOO; Scott Nations is long SPY; Scott Nations is long .VIX; Tim Seymour is long BAC; Tim Seymour is long SBUX; Tim Seymour is long MSFT;

For Colin Gillis:
BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report: EBAY, AMZN.