Gold may have fallen back from last month’s record high of $1,432 an ounce, but the decline is only temporary, says CNBC commentator Jim Cramer. So he tells viewers of his “Mad Money” show it would be wise to stock up on the precious metal and prepare for a move above $2,000.
“It’s time to take advantage of the weakness if you haven’t,” Cramer says. “The one thing we know about 2011 is that currencies — almost all big currencies — are suspect. There’s too much being printed here and in Europe.”
That means currencies will become worth less and less, while “gold’s going to be worth more and more,” Cramer says.
He maintains that gold, which represents less than 1 percent of the average fund manager’s portfolio worldwide, won’t peak until it hits something approaching 5 percent, much more than the historic mean.
“Maybe gold goes beyond the $2,000 I think could happen in the next four years,” Cramer says. “The low represents one more opportunity to buy gold and gold stocks. There’s nothing like a refreshing pause to get those underweighted in gold up to the 20 percent I find reasonable.”
Cramer’s not the only gold bull. Nearly half of 32 commodity experts surveyed by CNNMoney expect the precious metal will rise at least 9 percent to $1,500 by year-end. Many expect continued strong demand in China and India.
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