GO
Loading...

Cramer's 3 Reasons to Own Gold

Tuesday, 29 Mar 2011 | 8:02 PM ET
Mining Matters?
A shrinking supply of gold should lead to an influx of demand, with Rick Van Nieuwenhuyse, NovaGold president & CEO.

Every investor should own some gold, Cramer said Tuesday. After all, the precious metal is a hedge against global economic chaos. It's also in high demand from emerging markets and central banks. Perhaps most importantly, though, it's very scarce.

Considering just how scare gold is, Cramer favors NovaGold Resources . The Vancouver, British Columbia-based company finds high-quality gold reserves. It doesn't have any production yet, but Cramer said it's literally sitting on two gold mines. NovaGold owns a 50 percent stake in both the Donlin Creek and Galore Creek mines in Alaska and Canada respectively, which are among the world's largest gold deposits. The Donlin mine could reportedly produce 1.25 million ounces of gold a year while the Galore Creek mine could produce 223,000 ounces of gold a year.

NovaGold isn't expected to start producing until 2017, but Cramer thinks this stock is cheap right now. To learn more about its future prospects, Cramer chatted with CEO Rick Van Nieuwenhuyse. Watch the full interview here.

A previous version of this story misstated the location of the Galore Creek mine and when production is expected to begin.

When this story was published, Cramer's charitable trust own NovaGold Resources.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
NG
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.