Jim Cramer Says 'Sell Gold'—Analyst Tavi Costa Disagrees, Citing Gold-To-Silver Ratio

While CNBC’s ‘Mad Money’ host Jim Cramer told investors to “sell gold,” labeling it a “total spec/meme Bitcoin replacement,” Crescat Capital’s Otavio Costa contends that despite a significant reversal pushing gold near $4,000 per ounce, the precious metal’s bull run is far from over, primarily citing a historically high gold-to-silver ratio.

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‘History Of Gold Cycles’ Shows Third Major Bull Run Underway

In a recent X post, Costa presented a chart detailing “The History of Gold Cycles,” illustrating the current rally as the “3rd Gold Cycle.”

He emphasized that gold bull cycles typically do not peak until the gold-to-silver ratio is significantly lower, specifically around 45. Currently, that ratio stands at 85, suggesting considerable upside potential if historical patterns hold true.

Costa highlighted that in previous cycles, a gold-to-silver ratio below 20 preceded the peak in 1980, and it dropped to 30 before the 2011 peak. This historical context forms the bedrock of his argument that the current surge past $4,000 is not indicative of an imminent top.

See Also: Gold Assets Sparkle: GLD Sees Highest Volume In 12 Years, Surpassing Mag 7 As Yellow Metal Soars Nearly 57% In A Year

‘Trifecta Of Macro Imbalances’ To Keep Fueling Gold Rally

He attributes the ongoing strength in gold to a “trifecta of macro imbalances,” including central banks accumulating gold, government debt at historical levels, unsustainable high fiscal deficits, and a sharp contraction in the gold-to-silver ratio.

He also pointed to geopolitical shifts, an “inflationary regime,” and challenges faced by major miners as contributing factors.

Costa acknowledged the potential for volatility, describing the path ahead as “not a straight line,” but remains optimistic.

He believes current conditions could lead to “one of the most fiscally and monetarily undisciplined periods in modern history,” making hard assets like gold potentially “a highly rewarding cycle.”

Cramer Calls To ‘TRIM’ Gold As ‘Spec/Meme’

His analysis directly challenges the sentiment expressed by Cramer, suggesting investors look beyond short-term market noise to the broader historical and macro trends influencing gold.

Gold And Gold Mining ETFs Shine In 2025

Gold Spot US Dollar rose 0.61% to hover around $4,123.43 per ounce. Its last record high stood at $4,381.6 per ounce.

Here’s a list of gold and gold mining exchange-traded funds that investors could consider amid the gold price rally.

On Thursday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading in a mixed manner

Meanwhile, on Wednesday, the S&P 500 index ended 0.53% lower at 6,699.40, whereas the Nasdaq 100 index fell 0.99% to 24,879.01. On the other hand, Dow Jones declined 0.71% to end at 46,590.41.

Read Next:

• Central Banks Worldwide Hold More Gold Than US Treasuries For 1st Time In Nearly 30 Years: ‘Significant Global Rebalancings' On Cards Says Analyst

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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