Gold isn't gone yet

We need reasons beyond 'commodities down, buy financial assets' -- because we have been down this path so many times.

By Jim Cramer Dec 15, 2011 11:45AM
 (© Anthony Bradshaw/Photographer)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), Altria (MO), General Electric (GE), Kraft (KFT) and the other higher yielders can be bought. You can participate in the MarkWest (MWE) below where it was priced.

You can own US Bancorp (USB) 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!

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

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jim cramer
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for his charitable trust.

 



8Comments
Dec 15, 2011 1:45PM
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Wait until the hedge funds start dumping their gold.
Dec 15, 2011 5:50PM
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gold is like anything else;  you can't loose money on it if you don't sell it for less than you bought it for.  If you can't afford to wait out a long market correction then you shouldn't be buying it in the first place.

Dec 15, 2011 1:24PM
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Exactly wakeupnow07. I remember last summer when he was yelling "its not too late to buy gold" when it was hitting all time highs, I commented he just called the top. The wave pattern is looking just like 2007. 2012 should be just like 2008. But what do I know? My Wall Street bankroll is up 43% for 2011. Guess I'm just lucky. My best year ever.
Dec 15, 2011 6:47PM
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One thing that never goes down in price, guns and ammo and now that we subsidize our food into oil, corn will likely stay strong, we eat it, feed it to our food and burn it for energy. Cramer just killed gold with his jinx so now I should probably move off my gargantuan investment in 10 ounces of silver before I go broke lol. I always move away from what he says is jumping and it's worked out great for me for years now. It's like owning your own Jeanie in a bottle that spews reverse psychology at you.
Dec 15, 2011 5:23PM
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Uh oh, if Cramer is saying gold is going to recover, it's dead.
Dec 16, 2011 9:13AM
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I'm keeping my gold too. Things ain't gettin no better. Obozo is still potus. I see a light at the end of the tunnel but it's a long way off. At least one year and worse case 5 years. I will not be at all surprised when March 2012 or there abouts beats the March 2009 low. We have weak minded politicans hoping only for short term results.
Dec 15, 2011 6:45PM
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Repeat after yourself, I'm an idiot.  Repeat after yourself, I'm an idiot.
Dec 15, 2011 4:58PM
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Sell baby sell !!!!! The gold bubble is about to implode! Get out while you can!!! It was good while it lasted, but like all bubbles....there comes an end. Bookmark this page and remember you heard it here first! This is the beginning of the end. 
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