Jim Cramer, the popular CNBC host of the TV show “Mad Money”, finally capitulated and told his listeners to BUY GOLD. Jim Cramer Says to BUY GOLD
If you have been following the PracticalPaul blog regularly, you will see that I have been saying to buy gold all year! You can buy gold either physically, or you can buy the GLD, an ETF that owns gold. As the economy gets substantially worse, owning physical gold may be the better choice.
Better still is to buy silver, either physically or through the SLV ETF. Silver historically has been priced such that around 15 ounces of silver equals the price of 1 ounce of gold. Silver has gotten so cheap that it now takes about 85 ounces of silver to buy an ounce of gold. So I think silver is a better deal at this point.
It’s interesting that Cramer finally is beginning to “get it”. Too many folks on Wall Street still keep saying “stocks are cheap”, and they point to earnings numbers. The earnings they point to and the graphs they point to are yesterday’s numbers. Within six months, the earnings will be SUBSTANTIALLY lower, as the economy falls apart, and the dollar collapses. When that becomes evident, stocks will NOT be cheap! You want to sell while they are still expensive!
The market selloff we have seen so far is only the tip of the iceberg. Until the debt, stock, and derivatives bubbles all pop around the globe, a process that will take up to 2 years, this market will remain a bear market. We are only 2 months into this bear market cycle.
This is a DANGEROUS market, and probably the most dangerous I have seen in my lifetime. The precious metals are the only thing that will retain value when all is said and done.