Right now investors are dropping gold "like a hot potato" and ETF selling has been becoming more popular. Jim Cramer believes gold coins are the place to be because there is more liquidity with gold and gold has a place in everybody's portfolio.
By Debra Borchardt
04/09/13
The Street
Debra Borchardt:
It's time to revisit gold with Jim Cramer. If you've been watching the price of gold it has been coming down. We are down eighteen percent from those 2011 levels of eighteen ninety. ETF selling, everyone's out of gold now. They are dumping that gold like a hot potato and Jim, we know that of course gold is affected by the price of the dollar which has been strong and let's talk about gold because there are a lot of things going on here with gold. Like I mentioned the ETF selling and then we have this weird side note of the states starting pass legislation to make it legal tender which is kind of an odd side note.
Jim Cramer:
Right. Oh yeah because given the fact that gold costs so much. When you go to buy gold from a dealer there's a gigantic mark up in the gold coins. Yeah, gold coins the place to be. ETF, I like ETF but I think that the gold coin is beginning to have a real feel for it because I think that these countries like Japan and China, Europe, the continent there. I think they're going to embrace gold coins, so they have a little more liquidity with gold. I think they want to put it away and gold coins are a way to put it away.
Debra Borchardt:
A little bit more real than Bitcoin, right?
Jim Cramer:
Yes. A bit coin. Oh my. I remember being asked about Bitcoin when I was on The Good Wife. Had to go do research on it. Now it's become a two up situation but...
Debra Borchardt:
But back to gold.
Jim Cramer:
Yeah. Gold has a place in everybody's portfolio. Now when you say that and then gold goes down to the $1500 range, people say 'Why did you tell me to be in that?' It's like 'Hello? I've been recommending this thing for eight years' and I am not going away because if you look at what the currencies are being...what countries are doing to the currency, you've got to be kidding me to think that you don't like gold and just because gold's come down that gold is in a bear market I keep hearing. Fine. Well buy the bear market for heaven's sake.
