Gold continues to hit record highs, with $1,300 an ounce the latest significant barrier to be broken. And star CNBC commentator Jim Cramer says the rally isn’t over.
Investors’ concern about the sluggish global economic recovery and the explosion of government debt has sent them looking for safe havens – Treasuries and gold.
And news that hedge fund legends George Soros and John Paulson have bought massive quantities of gold led other investors to purchase the precious metal too.
“I’m always driven by supply and demand,” Cramer said on his “Mad Money” show. “We are having a really hard time finding gold in places that aren’t dangerous. That’s what’s really driving this.”
Is gold in a bubble, Cramer asks? “Arguably yes. But if we can’t find gold, you have to get prices up to where secondary holdings of veins of gold can be found. So right now, $1,300 is not a top.”
Cramer likes silver even better. “It’s so cheap versus gold,” he said.
And he’s not the only expert anticipating higher prices for gold. A poll of attendees at the London Bullion Market Association conference shows they think the precious metal will rise another 12 percent over the next year, to $1,450.
“It’s very hard to be pessimistic (about gold) in the short term – at worst, you’re neutral,” Kevin Crisp, managing director at Mitsubishi and chairman of the LBMA, told the Financial Times.
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