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Cramer: It's Not Too Late To Buy Gold

Despite the remarkable run in gold lately, Cramer on Monday said it's not too late to own the precious metal. The "Mad Money" host offered four reasons as to why gold is still worth buying now.

First, gold stocks aren't flying, even though the price of gold is on a tear. All gold stocks are off their highs and many are down for the year, Cramer said. Agnico-Eagle , for example, is down 14 percent for the year. Barrick Gold is down by 7 percent despite its superior options and NovaGold Resources is down by 26 percent, even though it has excellent Canadian assets.

Second, gold has historically represented roughly 5 percent of the average portfolio, yet the average portfolio today has just 1.5 percent exposure to gold.

Third, the move in gold is a total rebuke of the governments worldwide, Cramer said. The U.S. dollar is often called the reserve currency and is still the acknowledged security around the world. For some time, the European countries got together to use a common currency by way of the euro . But now, Cramer said neither currency is worth owning.

"What we need to do is have our currency be replaced by a different currency, the currency of gold, which is now recognized around the globe as something that no government can be debase," Cramer said.

Fourth, the technicals also indicate that gold should continue to climb, Cramer said. John Roque, a highly regarded technician on Wall Street, confirmed his findings. His charts call for a near-term target of $1,700.

So what's the trade?

If you want to own gold, Cramer said you can either open an account with a broker and buy the physical metal. Bullion is the actual brick or slices of gold, but only very wealthy investors should consider buying it because it needs to be stored in a depository bank. The other option is to buy the SPDR Gold Shares exchange-traded fund, which Cramer said is the best way to go.

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