Tuesday, January 4, 2011

Jim Cramer Still Bullish On Gold

Jim Cramer's been a gold bull for some time now, and he's staying the course. In a recent MSN piece, he says the current lull presents a buying opportunity - particularly for those who missed it the last time 'round. Demand from mainland China is still strong, and gold is still underowned relative to the level that can be reasonably expected should gold enter into an all-out bubble. We're far from that point yet.

He points to an inconsistency between gold coin shortages and the most recent sales figures from the U.S. Mint. The two can be reconciled by the Mint running out of stock, and therefore having less to sell in December. That would explain the drop in Mint product sales despite the physical shortage.

I know there's a lot of people who like to take pokes at Cramer, but he has stayed the course with gold and his advisees have profited a fair bit from his initial entry point. Anyone looking for a dig would have to look away from his gold record.

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