When Will the Gold Rush Be Over?
Cramer on Thursday said he agreed with renowned investor Julian Robertson of Tiger Management that buying the gold miners was “a really good call.”
Finding costs for these companies now are so low, Cramer said, “They can just spew cash forever.”
For those who want to own gold itself, Cramer urged them to ignore the commodity’s price, which is at $1,381. A better gauge of when the run in this precious metal has ended will be its size in the average portfolio. Right now it’s at just 0.6 percent of the typical portfolio. Cramer recommended holding on until that number reaches 4 percent to 5 percent.
“Then we will be able to take it off the table,” the “Mad Money” host said.
Cramer also agreed with Robertson, who was interviewed for Wednesday’s “Street Signs,” that a so-called fat tax should be enacted to help Americans make better food choices, especially as obesity levels in this country continue to grow. While Cramer understands that such a tax would most likely weigh the heaviest on poor people, and that measures would need to be taken in order to counterbalance that effect, this is too important an issue to leave unaddressed.
“The whole system is brought down by obesity,” Cramer said.
When this story published, Cramer's charitable trust owned NovaGold Resources.
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