GOLDBUGS AMEX Goldbugs Index (GOLD)

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Why I still like gold: Jim Cramer

Attempts to pin the metal's Wednesday collapse on Fed Chairman Ben Bernanke are far-fetched.

Nevertheless, I believe the chart took gold down, and the chatter on the decline always proceeds to assume that, at last, gold is finished as an investment. Gold bugs were already reeling from the annual assault on gold from Warren Buffett, who seems to have been wrong on gold for the last decade, and yet still remains someone who has the last word on it. It was yet one more element of weirdness that helped define the trading action.

Put it all together, and I find nothing sufficient to drive the decline in gold, other than sell stops from an ugly triple-top. In this wacko market, that may be all that's really driving the precious metal.

I remain bullish on gold because:

1.Central bankers are still printing money.
2.Rates are still so low that you can finance gold purchases for next to nothing.
3.We have seen no increase in supply, courtesy the difficulty of finding the stuff.
4.China, and the Chinese people, are huge buyers.
5.The Israel-Iran missile crisis.

Despite the endless attempts to pigeonhole gold as being wedded to the dollar, gold remains wedded only to itself and to its own supply and demand. Still, the fact that gold has gone up for 11 straight years, in strong dollar moments and weak dollar moments, means nothing to the gold bears who pontificate genuine gibberish on gold's every percentage move.

Full article link:
http://money.msn.com/top-stocks/post.aspx?post=917c04c0-9d18-4c9f-882d-ef4737f95608