Gold isn't gone yet

According to Jim Cramer gold isn't done yet. He says that even after the recent drop in the price of gold, it is still up 11% for the year! After golds big dip in 2008, it jumped 52% in price over the next year. So gold isn't gone yet!

By Jim Cramer
Thu, Dec 15, 2011 10:45 AM
MSN Money

People taking note of the banks holding up. People taking note of the FXE bouncing. People thinking a commodity collapse may not be all that bad.

I get that. I get the constant desire to call the bottom. I get the idea that we could bounce.

I simply want to point out that we need reasons beyond "commodities down, buy financial assets" -- because we have been down this head-fake path so, so many times. You don't need to be a hero here. General Mills (GIS +0.58%), Altria (MO +1.32%), General Electric (GE +1.08%), Kraft (KFT +0.83%) and the other higher yielders can be bought. You can participate in the MarkWest (MWE +0.83%) below where it was priced.

You can own US Bancorp (USB +0.08%) if you really have to. It's the bank I like. But why? To catch a 1% rally? To bet that the IMF is intervening tonight? I have bigger fish to fry.

Random musings: Before you give up on gold, consider these facts provided by our own Alix Steel. From the beginning of October 2008 to Oct. 24, gold sank 20%. It hit a yearly low of $695 an ounce, which was a 32% sell-off from 2008's high of $1,023 an ounce.

From Oct. 24 2008 to Oct. 24 2009, gold rallied 52%. Wednesday's price of $1,580 an ounce is only 17% lower than 2011's high of $1,923 an ounce. Gold is still up 11% for the year. Take that, deflation!

To see original article CLICK HERE

Follow Us

Share Page

Login

Get access to the latest trading information, tools to help your investing, and much more!

Login   Sign Up

Search

Weekly Charts

Current Spot Prices

Gold$1172.95
Silver$16.16
Platinum$1236.50

Special Offers

 
 
© 2012 Swiss America Trading Corp. All Rights Reserved.   |   Privacy Policy   |   Site Map   |   Contact Us   |   Mobile Version
SWISS AMERICA and Logo are trademarks of Swiss America Trading Corp.
Where did you hear about us?
Roger HedgecockRay Lucia
Pat BooneMichael Savage
Bill CunninghamOther
iHeart Radio/Rush Limbaugh
×