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Mad Mail: Why Gold Over Silver?

Jim: Do not beat yourself up…any stronger message may have caused more of a panic! Hang in, brother. My question: worked for 40 years, retired comfortably. Have always been an aggressive investor and have done well up 'til now. Sold off a little over 30% late Friday. Under the heading of "desperate measures for desperate times," why wouldn't I just completely liquidate on the next uptick as an offensive move, i.e., have it all in cash/gold until the dust settles and then buy, buy, buy? --Rick in North Carolina

Cramer says: “First of all, I would never fight anyone for doing that if you’ve worked for 40 years and have your nest egg…the only reason why I tell people to stay in the game is that there’s usually about 16 or 17 days all year that are responsible for all the ups. And if you kinda go flitting in and out there’s a chance that you’re going to not be in those days and not going get any performance.” Even at your age, you should still have 30% to 40% of your portfolio in stocks because you still need growth.

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Jim: Why is gold the only precious metal that is recommended? Why not silver? --Gary

Cramer says: “Gold is a proxy for precious metals. I just like it because it’s more visible…and frankly I just feel like that silver historically has not held its value like gold. And gold is just really a metal that’s in demand in India and China more than silver is. That’s my understanding.”

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Hi Mr. Cramer: I have a great new name for the Paulson bailout plan - The Wimpy Burger Plan. Objective: "I'll gladly pay you Tuesday if you buy my bad paper today." --Steve

Cramer says: The government should buy the different types of mortgages at prices that reflect their value. The only way to lose money here is by paying 100% for this paper rather than 30% or 40%. “I am trusting Hank Paulson to do the right thing. What’s the alternative? We just go [back] to the Stone Age?”





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