GO
Loading...

An Opportunity in Gold?

Monday, 19 Sep 2011 | 7:00 PM ET

The time is ripe for gold again, Cramer said Monday.

“Do not be dissuaded by today’s decline,” he said. “It’s another opportunity.”

No Huddle Offense
Mad Money host Jim Cramer shares his final thoughts of the day.

The “Mad Money” host believes gold is down because Europe isn’t collapsing.

As you probably know, Cramer likes the bullion and the GLD . But, he also thinks the individual gold producers are ready to take off after a prolonged period of consolidation and underperformance versus the actual metal.

First, Newmont Mining hit a 52-week high Monday, in part because it’s talking about a dividend increase as gold goes higher. Gold stocks used to have some of the highest dividends, Cramer said, and he thinks it can happen again.

Second, there's consolidation. For example, Agnico-Eagle Mines just announced it bought miner Grayd.

And third, many of the companies that opened mines over the last few years are beginning to reap the benefits of the expansion. Because of this, Cramer suggests buying Randgold Resources and Goldcorp. If you want a “plain vanilla” gold company, he suggests Barrick Gold.

The bottom line—if you don’t own any gold, use this opportunity to start building a position in the precious metal that is at least more than 10 percent of your portfolio.

  Price   Change %Change
YNP
---
FSMXX
---
G
---
RRS
---
NEM
---

“Consider the sell-off to be a gift that you shouldn’t be getting given all that’s wrong in the world now,” Cramer said.

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
ABX
---
AEM
---
G
---
GLD
---
RRS
---
NEM
---

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.