“The rally in the price of gold is far from over,” “Mad Money” host says…
“One more time: You must own some gold,” says CNBC’s Jim Cramer on a March 1st “Mad Money” broadcast. “Just get some exposure. I’ve been saying this for five years: The rally in the price of gold is far from over, even as it hit a record high today. …
“Remember what the bears were saying about gold in January. As the precious metal seemed to get ravaged day after day, they were talking about the selloff to end all selloffs. I used to hear it in my sleep! Saying that 2011 would be the year that broke gold’s 10-year winning streak. At Jim Cramer on Twitter I was attacked daily for saying buy gold at the end of the month. You know I said it. Looks like they kept you out of another fantastic move. No! I know that nobody likes to come in after a big run. You feel like you’re chasing, like some kind of Johnny-come-lately moron who missed the move, like it’s too late. Let me tell you something: You could have made that same argument at $800, $900, $1,000 … anytime in the past five years. And every time you would have been wrong. You would have truly missed some fantastic gains. I don’t want you to make that same mistake here.”
Cramer then cites the technical analysis of the highly regarded John Roque to raise his near-term gold forecast to $1,550, or more than 8 percent from its current level. “Roque thinks that with all the turmoil in the Middle East, we could be facing a 1970s-type scenario that leads to much higher prices for both oil and gold. When you hear all these people carp about the dangers of inflation, remember that gold is the ultimate inflation hedge. Everybody seems to understand the case for higher oil, but what few people remember is that gold prices soared in tandem. They soared right along with crude during the oil shocks of the ’70s. It was a time of tremendous inflation for this country and the world. … Compared to where it went in the ’70s, gold’s actually super-cheap. Nobody ever says that. I’m saying it. … you gotta get some in your portfolio.”
Watch the video for Cramer’s full comparison of gold’s performance in the 1970s versus now, along with an analysis of gold’s relationship with oil prices.
Click here to view the CNBC video…
All Things Considered – John’s Commentary
Gold is coming mainstream. People are afraid and reticent to take the plunge. Everyone eventually will – it’s just a matter of whether you are early or late.
Action to take: You only want to buy low premium, highly liquid forms of gold or silver. Depending on the prevailing gold:silver price relationship – one will be favored over the other in a allocation. Please call me to discuss this further.
Quote of the day: ” . . .gold and economic freedom are inseparable. . . . Deficit spending is simply a scheme for the “hidden” confiscation of wealth. Gold stands in the way of that insidious process.” – Alan Greenspan’s famous essay – ‘Gold & Economic Freedom’
