The market’s still way too volatile to trust your portfolio to stocks, bonds, and commodities, says Mad Money guru Jim Cramer.
Investors who fear government spending will drive down the value of their ordinary investments should now buy gold, he says.
“It takes more than President Obama making a speech to fix our problems,” Cramer told viewers this week.
“Until Tiny Tim Geithner loses his fear of the cameras and comes out with a real plan to deal with the financials and with housing, I think that gold remains your best bet.”
Cramer believes the best way for most investors to buy gold is through an exchange-traded fund (ETF).
He likes gold mining stocks, too, but cautions that production growth, cash costs, and price-to-net-asset value must be carefully assessed before buying stock in gold-producing companies.
Cramer advises investors who want to get away from paper investments altogether to buy gold bullion or coins.
Gold prices are currently trending down, and Cramer acknowledges they may well go lower.
But, when the market for gold rallies, he says, it will be too hard for investors to get in.
The supply and demand for gold in industrial uses alone does not support a higher price, says Jon Nadler, senior analyst at Kitco Bullion Dealers.
This frenzy is being driven instead by investors.
When stock markets crashed last July, traders sold gold stocks and held cash, Nadler notes.
"Now, they're seeing the financial crisis go into a new phase and getting into bullion," Nadler told The Star.com.
"This is being driven by ETFs, hedge funds, and speculators who are pushing the price up over $1,000.”
© 2017 Newsmax. All rights reserved.