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Gold Bullion Is "Trump Card Currency of Choice" Says Gartman

A RENOWNED independent investor has described Gold Bullion as the most suitable "coin of the realm" for nervous Eurozone investors. 

Dennis Gartman – editor of the famous Gartman Letter – said on Wednesday that investors looking to protect themselves amid the ongoing European sovereign debt crisis are likely to choose gold as a way of doing so.

"Dollars are a reasonable alternative, and increasingly the Swiss Franc is one also," wrote Gartman in his latest report.

"But the 'trump card' currency of choice is gold and in all likelihood it shall become even more readily embraced, not less so in the days and weeks ahead as Europe's problems worsen."

Gartman's comments come as the Gold Price in Euros set another record on Wednesday – its third in as many days – hitting €1088 per ounce (€34,990 per kilogram) in London afternoon trading.

Gartman added that the rise in Gold Bullion prices "is far from a bubble" and that gold "may become rather astoundingly more over-bought in the days and weeks ahead."

"Currently, we believe that default by a Eurozone country is not fully reflected in commodity prices...we maintain our position that economic conditions favor gold," wrote Marc Ground, precious metals strategist at Standard Bank, in a note to clients on Wednesday.

Figures published last week by the World Gold Council show that in the first quarter of 2011, Gold Bar and coin investment in Germany was more than double the levels of Q1 2010 – the quarter which ended before Standard & Poor's downgraded Greek government debt to 'junk' status in April 2010.

Swiss Gold Bar and coin investment, meantime, was up 117% over the same period.

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