Gartman Bets on Gold in Commodities Rally

Base metals commodities are the strongest position against coming catalysts, noted investor Dennis Gartman said Monday on CNBC.

Earlier, data from the Commodities Futures Trading Commission showed that hedge funds are ramping up their commodities positions to a 16-month high, which Gartman said was “precisely the right thing” to do.

On “Fast Money,” the editor of The Gartman Letter pointed to the likelihood of QE3 from the Federal Reserve, the European Central Bank’s move “to monetize European debt” and an evolving China infrastructure.

“I think that means coal and base metals look to me the place to be. The world seems to be overtly bearish about China. I think the world should be more aggressively bullish about what’s going on in China,” he said. “I think the wind is behind the sails of the commodity markets in general.”

Gartman also offered some details about his gold positions.

“To me, it looks like I want to own gold on balance in almost any type of commodity terms, dollar terms, euro terms, yen terms. And I even want to own gold while being short of soybean meal,” he said.

Trader disclosure: On Sept. 10, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long ANR; Pete Najarian is long TCK/WLT; Pete Najarian is long BX; Pete Najarian is long BBBY; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long MSFT; Joe Terranova is long VRTS; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long CSTR; Joe Terranova is long SHKP; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long AAPL SEPT $655 PUTS; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami’s wife, Linda Snow, works at Merck (MCK).

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