Don’t Look At Cryptos Unless They’re Backed By Something Real — Dennis Gartman

If you’re looking to invest in a cryptocurrency, it better be backed by something real, this according to famed investor and longtime Bitcoin bear Dennis Gartman.

The editor and publisher of The Gartman Letter spoke with LODE Magazine last week and said he is not impressed by Bitcoin’s recent rise near $11,000. Instead, he is staying away from the leading crypto.

“My opinion has not changed. I remain, at best, skeptical of Bitcoin and most other cryptos, and at worst, quite bearish of them,” he said.

“This arena is not for amateurs and is suitable only for the zaniest of speculators and is to be avoided. That does not mean that profitable trades cannot be made for they can be, but that is pure, rank speculation and nothing more.”

If not Bitcoin, what then?

Gartman is not fully against this market and said he sees potential in future cryptos, especially those backed by real assets.

“The advent of Facebook’s Libra will supplant and replace Bitcoin et al, for Libra will have real backing in the form of assets, while Bitcoin et al are backed by sheer ‘spec’ interest and very little else,” he explained.

“I am interested in Libra…very.”

Facebook has been making waves since announcing in June its plans to launch a cryptocurrency called Libra. However, regulators have been quick to question the tech giant’s plans to launch a global digital currency.

But, Gartman thinks Facebook could push forward with its plans and when it does, “there will be others competing for their spots, helping gold as the backing asset.”

In the current economic environment, Gartman says his top investment choices include, “gold and of silver in the form of CEF [closed-end funds].”

Further, the famed investor said he is long corporate bonds because of the monthly dividend stream he receives from them, and “a bit short” of equities via various derivatives.

“These are all in my retirement fund and it is my several millions of dollars so it is dear to me. I put my capital where my thoughts are!”

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