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Why You Must Own Gold
Published: Thursday, 11 Nov 2010 | 7:13 PM ET
By: Tom Brennan
Web Editor, Mad Money
The Federal Reserve is flooding the world with dollars as a way to keep American exports competitive, Cramer said Thursday. With the trade barriers keeping many of our products out of our trading partner’s countries, while at the same time imports from overseas keep flooding into the US, Chairman Ben Bernanke may think he has no choice.
His plan has been the topic of discussion at this week’s G-20 meeting, as other countries complain about the move. Regardless of the strategy’s merits, though, it’s doing a number on the greenback’s value, which is why Cramer thinks investors should own another currency as a hedge.
“Buy gold,” he told viewers during Thursday’s “Mad Money.”
Most retail investors can’t get their hands on Chinese yuans or Brazil reals, but they can add some of the precious metal to their portfolio. And Cramer thinks, even with gold at $1,400, that they should allocate 20 percent of their portfolio to it.
Gold [GCC1 Loading... () ] will serve as protection against the weakening dollar because, unlike the other commodities with which it’s lumped in—wheat, wood, aluminum—you can buy things with it. But notice also its growing popularity around the world.
China, the world’s biggest gold producer, continues to buy more on the quiet. So does their emerging middle class. Why? Because after a rocky hundred years or so, they don’t trust their own currency. Now they’re hedging their bets with gold.
The same goes for India’s middle class, though their purchases are largely gold jewelry, while China’s focus is on bullion.
Here’s a stat worth noting, too: Over the last decade gold is up 17 percent. Stocks over the same period? One percent.
So how do you play it?
Cramer ranks his trades in this order: coins, bullion, the SPDR Gold Shares ETF [GLD Loading... () ] and then the miners.
While there was a time when he would have steered viewers away from the last group, largely because they were too potentially negative variables, now he’s bullish on the miners. Cramer thinks money managers across the globe are seeing gold rise in price and they want in, and they’ll get in through stocks.
Cramer stuck with his favorites in the sector: Agnico-Eagle Mines [AEM Loading... () ], Eldorado [EGO Loading... () ] and NovaGold Resources [NG Loading... () ], the latter being a highly speculative bet on North America’s safe and as-yet-unexploited mines. In a world where fewer and fewer mines are coming on, at least in safe countries and stable climates, NG could become very attractive to money managers.
Maybe you’re wondering how high gold will climb before the run is over?
That “really isn’t really the right question,” Cramer said. “When gold gets to be about 5 percent of the world’s portfolios, I will reevaluate this 20 percent gold allocation for you at home.”
Right now it’s at about 0.3 percent.
When this story published, Cramer's charitable trust owned 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
© 2010 CNBC, Inc.
http://www.cnbc.com/id/40131687?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo
2011 is going to be exciting!
$2,500 Gold Could Easily Result in $178.50 Silver - Here's Why!
21-Sep-10 03:39 am
History will look back at the artificially high gold:silver ratio of the past century as an anomaly, caused by the dollar bubble and the world being deceived into believing that fiat currencies are real money, when in fact they are all an illusion. The wealthiest people in the future will be those who put 10% to 15% of their portfolio dollars into physical silver today and were smart enough to research and pick the best silver mining/royalty stocks to maximize their returns:
http://www.kitco.com/ind/Wilson/sep202010.html
Silver 29.25 +0.69 +2.42%
ENTI is definitely moving forward.
No worries.
Gold 1407.30 +21.40
Both gold and silver are very bullish right now.
.0008 / .0009
ENTI back to .0008.
.0007 / .0008
.0001 / .0003
.006 down .0001
.0005 / .0006
Joseph Meyer Predictions:
By end of 2015
Gold $6350
Silver $233
http://freedom4um.com/cgi-bin/readart.cgi?ArtNum=115012
How China will drive silver to $250
http://www.stockhouse.com/Columnists/2010/March/12/How-China-will-drive-silver-to-$250
How China will drive silver to $250
3/12/2010 12:24:12 AM | Peter Krauth, Money Morning
Individual investors can make an impact on its price
Once upon a time, the Chinese government forbade ownership of all precious metals.
But now, the ban has been lifted. In fact, China just introduced silver bars for investment. And now, state-run China Central Television (CCTV) is running a campaign encouraging the population to invest in silver.
That means there are over a billion potential new silver investors hitting the market. This is especially significant when you consider the average savings rate in China is 30 to 40%.
But the flood of new Chinese silver investors isn't the only factor driving up silver prices. The increased use of silver in everything from solar cell technology to medicine is pushing up prices as well.
Read on to discover exactly why silver will make savvy investors rich in the year ahead.
.0003 UNCH
All thirteen of my gold/silver stocks going crazy today.
Gold will be over $2,000 next year at this time.
.0375 +.0055 +17.5%
Volume so far: 133,686,011
.035 +.003 +9.38%
.036 +.0025 +7.46%
.036 / .037
.0008 +.001 +14.29%
.0007 / .0008
.0003 +.0001 +50.00%
.0002 / .0003
.04 -.0117 -22.63%
Volume is 17,133,638
.0402 / .042
I have always lost money on reverse splits.
.0003 +.0001 +50.00%
.055 +.0033 +6.38%
.052 +63% today so far.
.0502
ENTI is at .0007 +.0001 .0007/.0008 right now.
SREH will be going back up soon.
SREH opened at .0001 -.0003 -66.67%
Volume 1,300,000.
Closed at .0003 unch
.0001 / .0003
In 1980, gold hit a then-record high of $850 an ounce. If we adjusted that record for inflation, gold would sell today for well over $2,000 an ounce! (Some experts think it will go as high as $8,000).
There are many indicators the gold bull run is just starting.
One really big reason is scarcity. There is only so much gold. And at the same time there are so few places investors feel secure in placing their money, other than gold.
Consider this: The value of all gold ETFs in the United States is around $80 billion. That's less than the market cap of McDonald’s!
What does this mean? It means that the gold market is still relatively untapped and could potentially sky rocket as more and more investors jump in for safety!
Strategic Rare Earth Metals Inc. (SREH):
Vipyr Member Profile Vipyr
Thursday, November 18, 2010 11:50:51 AM
Re: None Post # of 5385
Anybody wanna take some odds, that the LAUNCH will officially take place this weekend, and that we will get a launch PR either Friday, Friday after the close, or Saturday night... Remember, the AMA awards are on Sunday night, and Ne-Yo will be performing.. And our CEO is attending the after party with Ne-Yo. Remember, we are dealing with the #1 publicity firm in the music and entertainment business here. This is going to be huge, and erupt like a volcano.
Someone had asked when the Iphone app will be launched. That will be launched at the same time MMX is launched, IMO.
Keep eyes open tomorrow and Saturday... would also not be surprised to see Musicmatrix.com commercials during the AMA awards... think of that audience that will be viewing the AMA awards on Sunday night... Everybody will be home. Millions watching.. What a better time to launch both ENTI and SREH at the AMA awards...And Marvet Britto is just the one to pull that off. Watch and see.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56855150
.0411 / .0425
.04 / .0425
.035 down .0085
Gold is headed towards $2,000 short-term!
I don't see ENTI going back to .0001 or .0002.