Cramer Says It’s Time To Buy Gold

In an article on CNBC, Jim Cramer urges traders to buy gold on the back of the sell-off on Thursday. According to him, buying gold can well be your “dream come true.” According to US Global Investors, gold stocks have surged an average of 8.34% each September since 1993. Apart from gold being a valuable commodity against market inflation and volatility, Cramer says that scarcity of gold is a good reason for such a bullish outlook. As most of the gold reserves across the world have already been discovered, Kinross Gold KGC was ready to pay $7 billion for RedBack, a mining company with operations in Western Africa. Cramer further said that the bid amount might go higher, another indicator that gold is scarce. Cramer has recommended SPDR Gold Shares ETF GLD, bullions, gold coins, and stocks of mining companies like Agnico-Eagle Mines AEM. The demand for gold in emerging countries like India and China is likely to push the price of gold per ounce to $1,300 in September. Gold is currently trading at $1,203/oz. Kinross shares fell 2.74% to close at $15.24 yesterday. Agnico-Eagle shares were down 92% to $60.30 at the time of close of the market yesterday. To see more trading ideas, click here.