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Thursday, October 03, 2013

Jim Cramer on Gold

Jim Cramer has said something about gold. Insider Monkey has provided us a blog about "Jim Cramer on Gold".

Jim Cramer, host of “Mad Money,” took sometime on Monday night’s show to explain the recession, the role of the Eurozone in the U.S. economy and how gold comes into it all. His comments came after Europe’s sour outlook drove share prices down on Monday, as well as commodity prices. Fund managers were just as bearish. In the third quarter, fund managers Barry Rosenstein, of Jana Partners, and John Paulson, of Paulson & Co, cut their stakes in gold.

Cramer, however, was not swayed. “The vicious decline in gold is signaling the collapse of the current financial order, an order that’s based on printing money to cover up problems,” said Cramer. “Almost everything will be worth less, and you can see the value of property declining immensely in Europe. In that scenario, everybody’s saying, ‘No inflation? You’ve got to sell your gold.’” Cramer says otherwise. “In other words, right now gold is saying it cannot be used as a safe haven in a deflationary environment, even as gold has always held its value in times of political and economic turmoil,” explained Cramer. “That’s why I think gold’s current direction will turn out to be wrong.” Should you want to know more about gold, please visit the site of Insider Monkey.