Cramer: Gold Has Bottomed—Buy, Buy, Buy!
“I think it’s time to get ready to buy some gold,” Cramer told “Mad Money” viewers on Thursday.
Cramer had said to skip what he predicted would be a bad month of January, and that’s just what happened. But now with February here, he wants investors back in this precious metal now that it looks like the bottom is in.
How does he know? Well, there was Newmont Mining’s purchase of Fronteer Gold on Thursday for a sizable premium. But more than that, Cramer said the charts are screaming buy. One of his favorite technical analysts, Tim Collins, has seen action in the daily and week charts of the SPDR Gold Shares exchange-traded fund, which tracks the price of gold, that indicates another $50 to $70 move in the cost per ounce.
There’s another tell that Cramer’s using, too. Gold stocks tend to act as leading indicators for the precious metal itself. They peaked late last year and fell about a month before the price of bullion did in January, and now they’re starting to stabilize again. If Cramer’s right, then that means gold prices should soon follow suit.
Cramer’s reasons for gold remain the same: It’s insurance against inflation and economic volatility. It operates as a stable currency when governments worldwide are printing excessive amounts of cash. And there’s huge demand for the physical metal, but the ready supply can’t keep up. That’s why he’s so bullish on this trend.
“The bottom in gold is here,” he said. “I think it’s time to buy, buy, buy.”
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