Eldorado: Fine or Fugazi?
Cramer is constantly extolling the virtues of owning gold. The precious metal is a classic hedge against inflation as well as the market’s occasional volatility. The question then is how to own it.
Mad Money viewers have heard Cramer recommend the SPDR Gold Shares ETF , which tracks the price per ounce. But he’s been bullish on a couple of the related stocks as well, namely Agnico-Eagle Mines and Eldorado .
Wednesday’s focus was on Eldorado, one of the industry’s lowest-cost producers. While gold prices are up just 7.8% this year and Agnico has increased only 10%, EGO is up a healthy 39%. And that run may not be over.
But there is a gold miner’s curse of sorts that investors should know about. The developing countries in which the most digging takes place aren’t always the safest places to do business. Cramer feels largely positive about Eldorado’s projects in Turkey, China, Greece and Brazil – they’re much better than Venezuela or most African nations – but he wanted to check with CEO Paul Wright to make sure.
Is EGO still worth buying? Watch Cramer’s full interview to find out.
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