God made man, Samuel Colt made them equal.
Posted on 08/11/2010 8:56:16 PM PDT by jiggyboy
If Cramer is right about a sell-off coming early on Thursday, then that could be “your dream come true” to buy gold.
See, according to US Global Investors—“the best source on gold that I know of,” Cramer said—the gold stocks have jumped an average of 8.34% each September for the past 17 years, making right now a great time to buy in.
Investors always want at least some gold exposure in their portfolios, as it protects against inflation and overall market instability. But there’s another reason that Cramer’s bullish on the precious metal right now: scarcity.
Most of the world’s gold reserves have already been discovered. That’s why Kinross Gold [KGC 15.24 -0.43 (-2.74%) ] was willing to pay $7 billion for RedBack, a gold company with mines in Western Africa. The same West Africa that is home to Mauritania, Cramer said, which has endured two coups in the last five years and human slavery is still in widespread practice. Most likely Kinross would never risk such an area if gold could be found anywhere else.
And believe it or not, but that $7 billion Kinross is paying might not be enough. Cramer said there is speculation that even higher bids are possible, which is another sign that gold is scarce.
So how do you play it? In this order, Cramer said: the SPDR Gold Shares ETF [GLD 117.34 -0.39 (-0.33%) ], gold coins, bullion (if you can afford the depository bank) and high-quality stocks like Agnico-Eagle Mines [AEM 60.30 -0.56 (-0.92%) ].
This confluence of events—the scarcity, seasonality—as well as what Cramer sees as a growing demand for gold by the middle classes of developing nations like China and India, could push the price per ounce to $1,300 in September, he said. That’s up from $1,190 where it closed today, a sizable jump for anyone who wants to play the trend.
“I think the clock is ticking before gold's next big run,” Cramer said. “Use tomorrow’s pending ugliness to buy some if you haven't already.”
The Japanese Nikkei-225 was down 2.28% when I looked at it earlier. It is down only 1.86% now as I post. See here.
Then with Cramer today CNBC had a trifecta. CNBC keeps pumping up the soon to be GM stock offering, and Erin Burnett was saying we need a VAT, because most countries have it. It was indeed sick.
God made man, Samuel Colt made them equal.
Worse than that! When he has given up on the market, it’s time to run...all things. Unfortunately, that only leaves bonds and they are not looking so good right now...
Alchemists for thousands of years have tried to turn lead into gold. They never did succeed, but they did find out they can turn all the gold they wanted to into lead.
The previous confiscation only got about 1/3rd of the gold coins. I would expect that should they try this again, compliance rates would be far lower.
Unfortunately, it has infinite upside potential. Fiat currencies can be driven to zero value.
My Nigeria email will trump this strategy!
Next time, they'll collect more lead than gold.
So does Keith Olberman. Just goes to show, one can be an idiot and always wrong, and still have a TV show.
Can’t argue with that. I think the trend in gold prices will continue to be upwards, but with peaks and valleys along the way. I was thinking more in investment terms, you don’t want to buy on the “peak”.
Sometimes a rifle ball is worth all the gold,,,
Gold is worth nothing,,,
The things you can buy with gold is where the value is...
Don’t put it in banks. Don’t tell Uncle you have some.
I saw one calculation that if Uncle could get all the gold in private hands in the US then Uncle could back the USDollar at around about $5000oz.
Never, ever follow Cramers advice. He's a showman, nothing more.
Even showmen can be right on occasion.....still gold and silver are insurance....and investment.
As an investment...it involves substantial risk and possible gain....
Those that have it understand...those that don't have it, generally are its most outspoken opponents.
That is a great way to have silver. If I need to barter I can go back to 2 bits or 4 bits for what I want to buy. I will be on the look out for Stagecoach silver coins.
The saying: "Even a broken clock is right twice a day" comes to mind. This is true of Cramer. He's a nutcase.
Gold and silver are way too expensive now,and way too many people are investing in the ETF's, which are paper without the backing of the actual commodity.
Personally, I've been doing fine with the buy-and-hold technique with high dividend stocks.
But, I heard that when you buy it, now it is going to have to be reported. And, even if you already have it, wouldn’t they know you’ve got it the minute you try to use it for anything...I mean, it does you no good to just sit on it? I’ve been considering getting some, but can’t figure out the benefit, in a crisis scenario.
I’ll be amazed if gold drops below $1000. Before it does, the big boys (central banks, nations) will be buying all they can. Remember China’s big bold buy at $1045? It hasn’t seen that point since, and likely there is more bucks at that price waiting for an opportunity.
If it drops below $1000, lots of people who missed out the first time will be lining up to buy,
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