Jim Cramer. “I trust Gold, I don’t trust Paper!?!”

Paper pushing, flip/flopping Jim Cramer of Mad Money took a letter tonight from a follower of his show concerning diversifying assets into Gold.  With CNBC ratings falling faster than a Pre-FOMC silver smash, perhaps CNBC executives have advised Cramer to seek investment information from legitimate sources such as Zerohedge and SD.

“Alright, Here is one from Schultz in Arizona.”

“Hey Schultz!”

Question: Jim, How much gold should I hold as a % of my portfolio?

 

Ever since I started the show (??) I have felt that between 10 and 20% should be your benchmark.  When gold flew all the way up to 1800 in 2011, I felt, you know what let it pull back and you can even sell some.  But you got to keep your core position.  Why?  Because I do not regard gold as a stock, I regard it as a currency.  It is an alternative currency to the fiat currency the printed currency that we have in the United States and that they have in Europe.

 

I gotta tell you, I trust Gold I don’t trust Paper.  That’s why between 10 and 20% makes so much sense.”

 

BullRun’s Take:  Wow, thank you Jim for taking a phone call and highlighting a benefit of holding gold in your portfolio.  All this sounds fine and dandy, except you promote GLD to your listeners on a regular basis, not the true physical metal!  And while your at it with your paper pushing friends, I’d think about educating your readers on direct shareholder registration of their stocks.  Then we would be talking about true protection, if there is such a thing, playing the paper game.