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Tuesday, March 01, 2011

Jim Cramer Recommends Gold and Gold Corp.

Update 7/29/13: Today on CNBC's "Street Signs" at about 11:30AM PST Amanda Drury interviewed Jim Cramer for their regular "stop trading" segment.  Gold (Quote and Chart) closed at $1,410.90 per ounce near its all time high.

Jim Cramer was very excited about Gold.  Cramer said
  • "I've been a gold bug since 'Mad Money" began.
  • EVERYONE should have ten to twenty percent of their portfolios in gold.
  • Gold is "extraordinarily poised to go up better than ANY OTHER ASSET in the world."
  • Gold "could see $1,550 very quickly"
  • Gold "could" see $2,000 per ounce within 18 months.
  • "They can't find the stuff."
  • EVERYONE must own gold!
  • "Gold is your antidote to what is going on.... Chaos in Washington.  Chaos in the Middle East."
Today Gold closed at $1,410.90 per ounce near its all time high.
When asked what he liked for a stock pick, Jim recommended Goldcorp (GG).  Jim said he likes GG because of their low p[roduction costs and "ability to find the stuff."

Today GG closed at $49.34, slightly below its all time high
I wonder how many people will add Gold or Goldcorp to their portfolios now near all time record highs based on Jim's advice.

  1. Can anyone verify that Cramer has been a gold bug since his Mad Money show began?  
  2. Has Cramer had Gold in his action alerts portfolio for 10 to 20% from the start? 
  3. Was it a small position that grew with the large gain in gold? 
  4. did he add Gold recently?
Personally, I own a very small amount of gold hidden in the house for bribes if we see Armageddon, but I own "treasury inflation protected securities" (TIPS) mutual funds (like the ETF TIP or managed funds FINPX, VIPSX) and Series I-Bonds, as well as individual TIPS. I also believe it is a good time to own equities, including SPY, the exchange traded fund for the S&P500, for both inflation protection and income.

The individual 30-yr TIPS I said I was buying in "How to Play Expected Inflation From the TIPS Spread" are up about 6% in just two weeks already. I am not making any predictions for the price of Gold, but individual TIPS bought directly from the US Treasury are safe since they won't lose money if the price of gold crashes.

More Information:

1 comment:

  1. Cramer Update for Gold reported at SeekingAlpha

    Is Cramer Abandoning His Bullish Gold Thesis? SPDR Gold Trust ETF (GLD)

    There are rumors that Cramer is no longer bullish on gold, but Cramer says this is based on a misunderstanding of some advice he gave. When he told a viewer to dump gold, he was speaking as if he were a short-term trader, because the precious metal has seen a huge move and there is likely to be some short-term pain. However, for investors who view gold as a currency and want to invest in the long-term, he recommends taking the pain and staying long gold. With rising global demand, political instability in the Mid-East and inflation, gold's bullish thesis has not gone away, but there might be a short-term pause. He recommends buying SPDR Gold Trust ETF (GLD), and predicts gold will reach $2,000.

    Currently GLD = $138.10 as of Mar. 11, 8:45AM PST and Gold is at $1,414.80


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