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Jim Cramer: Gold Going to $2,000
Newsbusters ^ | October 5, 2010 | Jeff Poor

Posted on 10/05/2010 3:47:53 PM PDT by Rufus2007

One of the most embattled commodities over the last few years as the economy has struggled has been one of the most precious of all metals – gold.

Over the last 12 months, the price of gold has appreciated considerably. But CNBC host Jim Cramer contends it is going higher – much higher. In an Oct. 5 interview for with Alix Steel, a reporter from Cramer’s website TheStreet.com, Cramer explained that the current high price of gold is not the result of a bubble, which he debunked by explaining the definition of a bubble.

“Well you see, bubble’s a complicated term because a bubble to me implies that you’re never going to get your money back,” Cramer said. “People say that there's bubble in bonds – you will get money back just you may not do that well. Bubble in Chinese real estate – entirely possible. The Chinese economy is a growth economy and can sustain a bubble in one area and not others. The gold bubble is what people talk about. They talk about it when gold’s down for a given day but -- I think as our resident gold expert, I mean you could tell us – finding costs have gone up. There’s just not a lot around.”

...more (w/video)...

(Excerpt) Read more at newsbusters.org ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: cnbc; gold; jimcramer
The price of an out-of-control federal government and a willing Federal Reserve.
1 posted on 10/05/2010 3:47:56 PM PDT by Rufus2007
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To: Rufus2007

Now that Cramer said this, I believe I’d sell every ounce I had.


2 posted on 10/05/2010 3:49:11 PM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: Rufus2007

You actually believe this idiot?


3 posted on 10/05/2010 3:49:37 PM PDT by rabscuttle385 (Live Free or Die)
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To: KoRn

No, Cramer is always right! [/s]


4 posted on 10/05/2010 3:54:09 PM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: Rufus2007

Jim Cramer has gotten on the gold bandwagon?

ROFL! That’s a sure sign it’s going to flop. And HARD.

I’m going to scrape up a few more bucks and buy more DZZ.


5 posted on 10/05/2010 3:54:14 PM PDT by Nervous Tick (Trust in God, but row away from the rocks!)
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To: rabscuttle385

You actually believe this idiot?

He is always wrong isn’t he? Now I am worried.


6 posted on 10/05/2010 3:54:32 PM PDT by mountainlion (concerned conservative.)
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To: Rufus2007
This funded by the Federal Reserve is the October surprise. It will continue past the November elections and then the balloon will pop.
7 posted on 10/05/2010 3:56:13 PM PDT by Logical me
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To: Nervous Tick

Seriously. If ever there was a signal of a TOP, this is it!


8 posted on 10/05/2010 3:58:50 PM PDT by Huck (We need the spirit of '76, not the spirit of '87)
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To: mountainlion
Anyone who actually takes Jim Cramer seriously deserves to suffer the consequences.


9 posted on 10/05/2010 4:01:15 PM PDT by rabscuttle385 (Live Free or Die)
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To: Rufus2007

Some governments have STOPPED selling their gold reserves.


10 posted on 10/05/2010 4:01:25 PM PDT by stockpirate ("......When the government fears the people you have liberty." Thomas Jefferson)
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To: Rufus2007

$2000 Gold will yield $50-$100 silver. Much more upside in silver my friends. Skip that “my friends” comment. That’s creepy.


11 posted on 10/05/2010 4:01:44 PM PDT by samadams2000 (Someone important make......The Call!)
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To: Rufus2007

The problem with gold is worse than that of bubbles. The stuff is totally useless other than for electrical connectors and bracelets and there are other much cheaper metals to make connectors and bracelets out of. The value of the stuff is totally based on psychology and psychiatry, and not on economics or physics. The danger is that the human race might wake up and the stuff be viewed as worthless the next morning.


12 posted on 10/05/2010 4:03:50 PM PDT by wendy1946
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To: Rufus2007

Just talking over dinner tonight about selling my gold. My 17 year old son told me to sell last week.

I think this means sell.


13 posted on 10/05/2010 4:04:32 PM PDT by FarmerW ( - Milton Friedman - The government solution to a problem is usually as bad as the problem.)
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To: Huck

>> Seriously. If ever there was a signal of a TOP, this is it!

heh... yeah, but don’t forget the “blind squirrel factor”. And Cramer is almost there: he has the squirrel part down pat.

Funny... I almost pinged you to this thread, but after my last cautionary FReepmail lecture I didn’t think it would be seemly. :-)


14 posted on 10/05/2010 4:05:10 PM PDT by Nervous Tick (Trust in God, but row away from the rocks!)
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To: KoRn

Cramer is a superior contrarian indicator...


15 posted on 10/05/2010 4:06:03 PM PDT by Fred (Suspend All Immigration Until Unemployment is Reduced to 5%)
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To: samadams2000

>> Much more upside in silver my friends.

Yer creepin’ me out, FRiend. :-)

You’re prolly right about the silver upside though.


16 posted on 10/05/2010 4:07:20 PM PDT by Nervous Tick (Trust in God, but row away from the rocks!)
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To: Rufus2007

Beck suggested to start storing food. Soros might be banking on the collapse of the dollar.


17 posted on 10/05/2010 4:10:16 PM PDT by dragonblustar ("... and if you disagree with me, then you sir, are worse than Hitler!" - Greg Gutfeld)
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To: Nervous Tick

Silver is undervalued compared to gold. It’s also a lot easier to use (in smaller amounts) than gold.


18 posted on 10/05/2010 4:14:16 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: Nervous Tick

I reduced my holdings today at a nice capital gain.


19 posted on 10/05/2010 4:14:33 PM PDT by omega4179 (Rino hunt 2010!)
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To: Rufus2007

sell sell sell


20 posted on 10/05/2010 4:16:46 PM PDT by Retired Greyhound
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To: dragonblustar
If there IS a collapse of the dollar gold will go at least to 2000. It finished around 1350 today. I would be long gold right now except that I do not trust the market. The gold market is small enough that it can be manipulated rather easily, what with mining companies hedging, speculators specking, and central banks pursuing their own arcane agendas. I agree silver is a better bet for the small investor.
21 posted on 10/05/2010 4:21:44 PM PDT by hinckley buzzard
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To: samadams2000

Inflation factored historical high for gold is around 3k.

Thats the historical high...we are living in times unmatched.

Inflation factored historical high for silver is around $300.

The historical silver high is was created by a corner on the market...thus silver has been largely ignored by many investors...however the fact remains that people were paying that high...so it is the real historical high :)

At this point the Silver gain percentage is higher than golds.


22 posted on 10/05/2010 4:30:06 PM PDT by Therapsid (Communism has killed 50-60 Million people in only 50 yrs.)
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To: Rufus2007

Cramer is such an @ss W!pe.


23 posted on 10/05/2010 4:39:11 PM PDT by nkycincinnatikid
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To: KoRn
Now that Cramer said this, I believe I’d sell every ounce I had.

My immediate reaction as well, and I'm a gold bug.

24 posted on 10/05/2010 4:48:32 PM PDT by Timocrat
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To: samadams2000

Thanks for pointing this out. I was scanning the comments to see if anybody would pick up on this.


25 posted on 10/05/2010 5:08:21 PM PDT by MSF BU (++)
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To: Therapsid

How do you typically trade silver? I simply pick up old eagles when they are available at my local coin shop. Inventory is limited to what comes in, but the supply is relatively steady, and it’s priced typically at spot+ a small commission.


26 posted on 10/05/2010 5:12:15 PM PDT by MSF BU (++)
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To: wendy1946

From an economic stand point it is realitively rare compared to other commodities. Its not easy to get (espcially pre industrialized days) and compared to the total amount of currency that has been printed it is indead a very rare thing. That is a factual component to phychology. People don’t have a certain psychological make up for no reason, its based off of experience including history that is passed down the ages. So why would a population as a whole gravitate to gold and silver as being seen as money? Could it be that paper currencies always go to zero at some point? Could it be that governments once infected with corruption and players seeking absolute power eventually do the economic system in? Even a gold and silver system can be corrupted or debased as was done by the Romans who clipped their coins, melted them down to make new ones. They also cladded coins to make them look like gold. Things became so bad that the goverment wouldn’t except payment of taxes with their own coinage. You had to pay with bullion.

Now if we can make gold like the old alchamey stories went then that is the end of gold as a store of value and you can believe that people will learn and the psychology would change.

Also, if the system where to stay honest then a fiat money system would work forever. But as anyone who has studied history knows, people are not always honest. There are periods where people are far more honest and honerable, and their are period where they are not maybe so much so that we have seen totaltalitarianism rear its ugly head like no other system in human history. The results are on display throughout the 20th centrury and festering like an open wound in the current one. Even fiat currencies are based on psycology, at least gold is still there; the paper will decay. You may have to wait a while for a new system of government that will be stable for gold to have value but eventually it will.

Cramer may be an idiot, but occasionaly even idiots are right. We have a government filled with leftist that are so hard core, if they could get away with killing those that oppose them in mass and enslave the rest with fear (just look at the fantasy of the climate change video in Britian wher they blow people up with a push of the button) they would do it in a nanosecond. Fortunetely that won’t happen, at least not from the inside. None the less, we still have a government who sees all use normals as the enemy, they are attacking everything they can especially this economy. Print money, ignore banrupcy law, change laws in mid-sentence, find hack judges who help them out, have incetious relations with top tier business and their boards (and running them into the ground where they need bailouts) and the revolving door that from private sector to politician and back again, take away peoples freedoms, and the list goes one. Its been going on for a while, but now people are now seeing with their own eyes especially the top tier earners and governments who are most liley going much of the buying. The vast majority of the public doesn’t even have gold on there radar screens.


27 posted on 10/05/2010 5:13:12 PM PDT by DarkWaters ("Deception is a state of mind --- and the mind of the state" --- James Jesus Angleton)
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To: Rufus2007

Rats. Time to bail.


28 posted on 10/05/2010 5:35:51 PM PDT by E. Pluribus Unum ("The only stable state is one in which all men are equal before the law." -- Aristotle)
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To: wendy1946

The danger is that the human race might wake up and the stuff be viewed as worthless the next morning.


Sure. Millennia of human civilization will turn on a (base metal) dime, and ignore the remarkable and unique attributes of gold that have made is an enduring monetary standard.


29 posted on 10/05/2010 5:38:05 PM PDT by Atlas Sneezed (Congressmen should serve two terms: One in Congress and one in prison.)
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To: wendy1946
The danger is that the human race might wake up and the stuff be viewed as worthless the next morning.

Please cite just one instance in the last 5000 years where the human race decided gold was worthless?

How many times in the last 5000 years did they decide that a paper fiat currency was worthless?

God gave you a brain - use it!
30 posted on 10/05/2010 5:52:07 PM PDT by dollarbull (why are paperbugs so bad at history?)
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To: wendy1946
"The value of the stuff is totally based on psychology and psychiatry, and not on economics or physics..."

Exactly...and there are numerous emerging world cultures who value gold immensely because of cultural reasons. There is said to be rapidly increasing demand for this scarce resource in Asia...particularly in India. An economy that is doing well, India, has citizens who for the first time can finally afford Gold.
31 posted on 10/05/2010 6:15:54 PM PDT by AdamBomb
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To: Nervous Tick

Sending you freepmail


32 posted on 10/06/2010 5:59:08 AM PDT by Huck (We need the spirit of '76, not the spirit of '87)
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To: MSF BU

How do you typically trade silver? I simply pick up old eagles when they are available at my local coin shop.

___________________________________________________________

Junk Silver is cheaper and easier to get rid of. It is 90% silver just like the silver dollars but is dimes, quarters and half dollars. It is a little bulky but it is getting less so.

Silver is seriously under priced right now, I see it going easily to $100.00. Lately it has moved nearly a dollar a day on some days. Silver is an industrial metal that has many uses and there is simply not enough of it.

The federal government has added to the money supply by twice what it was, in other words in the last year and a half our money supply is three times what it was just a year and a half ago. We haven’t seen the inflationary effects of that yet but we will and that is when precious metals will really take off. Crammer is not wrong on this except that he is low. I see gold going to $3000 before it starts to slow down.

$20 gold pieces are ok for a hedge against inflation but if you have a few of them stolen or misplace them you have lost a lot. Having a few hundred pounds of silver is unwieldy but that is not all bad.

Silver is really easy to get rid of. If I offered you a silver dollar for $20.00 you would likely jump at the offer. If I offered you a $20.00 gold piece for $1400 you might think you would like to do it but you would unlikely have $1400 in your pocket. If you need to buy groceries you can do it easily with silver coin but no so easily with gold unless you are willing to give away a lot of gold value.

The important thing for all Freepers to realize is that now is the time to get your money out of money and into something of real value, starting with metals is a good bet. Oil, coal, food comodities are also a good consideration. When the high inflation hits, and it surely will then the real estate market will really tank. Prices will go up on the commodities we need to live so buying a new house will be way low on priorities. That will be the time to pick up investment property. People will again walk away from their mortgages because they would rather eat than pay for their houses. Banks will still be bailed out by the Federal government and they will be letting property go for a song for anybody that can pay for it.

My advice is grab your 401k and IRA’s and put them into metal today and in six months to a year the metals will likely top, then put the metal into real estate and retire to a house in Florida.

I’m an old man. I have never seen our country in the condition it is in now. There is simply no way we can meet our obligations. The only thing the government can do is inflate the money supply to pay off it’s debts. That works but it steals the value of savings. I have seen Freepers say that Obama will confiscate our retirement plans, I don’t think that will happen. He will steal the value instead by inflating money supply and paying back the debt with worthless dollars.

With money supply where it is right now one dollar in 2009 should only be worth $.35 today.

The nations of the world know the score. Because we have inflated our dollar so badly our products are relatively cheap compared to other countries. They can buy a lot of dollars for a Euro. That makes their products hard to sell. They instead start selling their money to devaluate it so that they can be competitive. Once everybody starts selling their currencies that will only put more pressure on precious metals. I suspect that after the elections there will be a mad dash to sell sell dollars for gold and silver. People with lots of money are buying lots of metals, they know something.

Most buyers of metals buy high and sell low. Big money people know this and are buying now. Don’t wait too long Freepers or you will be left in the dust.


33 posted on 10/06/2010 6:57:52 AM PDT by JAKraig (Surely my religion is at least as good as yours)
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To: JAKraig

I appreciate the advice. So basically accumulating silver is not bad, as long as it’s verifiable. There is always some concern about whether the little silver ingots issued are or may be counterfeit, but I have been told that counterfeiting silver in the one to ten ounce range isn’t worth the trouble. The commemorative one ounce silver ingot or coin is generally safe.


34 posted on 10/06/2010 7:18:30 AM PDT by MSF BU (++)
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To: MSF BU
There is always some concern about whether the little silver ingots issued are or may be counterfeit, but I have been told that counterfeiting silver in the one to ten ounce range isn’t worth the trouble. The commemorative one ounce silver ingot or coin is generally safe.

________________________________________________________

Junk coin is the safest investment there is. Not everybody will buy silver ingots or 1 oz rounds like commemorative coins but US silver coins are know world over.

35 posted on 10/06/2010 7:22:15 AM PDT by JAKraig (Surely my religion is at least as good as yours)
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To: JAKraig

Point taken, in my area the junk silver is not always readily available, but I’ll look a little more aggressively and see if I can find a reliable source.


36 posted on 10/06/2010 7:34:44 AM PDT by MSF BU (++)
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To: MSF BU

The health care bill specifies that all gold and silver sales will be tracked from now on...at this pnt.silver is the better buy...also study silver as an antibiotic...


37 posted on 10/07/2010 8:17:42 AM PDT by Therapsid (Communism has killed 50-60 Million people in only 50 yrs.)
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To: Therapsid

Eh, all that means is that most gold and silver sales will be conducted under the table. I buy quite a bit of silver and gold in Massachusetts from people who know me. I have never paid sales tax on those sales. They day they try to charge me or track me I’ll start buying exclusively in New Hampshire.


38 posted on 10/08/2010 6:12:24 AM PDT by MSF BU (++)
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To: Rufus2007

Exactly...gold is NOT going up...the dollar is going down. It’s a matter of relativity.


39 posted on 10/08/2010 6:21:11 AM PDT by PjhCPA
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