From today's Gartman Letter...... (8-27)

"Turning then to gold, we are bullish of gold… but in EUR terms for the moment, although we may find ourselves becoming more and more bullish of it in terms of Sterling or Indian Rupees or other major currencies in light of Mr. Sarkozy’s comments noted above. As we write, gold in EUR terms is trading €663.60, and it shall require only a move upward through €670 to get us more interested in the trade than we already are.

Finally, we want to say thanks to our friends at ASA, Ltd, long standing clients of TGL, for the very interesting chart this page above of jewelry demand for gold worldwide. As is rather clearly evident, jewelry demand has been falling rather steadily since the late ‘90’s, replaced it seems by demand for gold from the ETFs. Any modest rebound in jewelry demand would be quite positive for gold, but as the chart markets clear, along the way down from the peak in the ‘90’s, we’ve seen one and two year advances, so we must not become to excited when we see one and two and three month reports of rising jewelry demand, and we must not believe that a new upward trend is therefore evolving… But, it would be supportive nonetheless. Our analytical eyes are therefore peeled.