G20 Seoul summit means buy gold : Jim Cramer


Jim Cramer, a financial pundit and former hedge fund manager, said the best way of “making money off” the G20 Seoul summit is betting it won’t go well.

Cramer, in an MSN Money commentary, said the U.S. will try to impose its agenda on the rest of the world. Right now, that agenda is printing money to prevent foreigners from dumping cheap exports to America.

In response, some foreign countries will also devalue their own currencies to counteract the U.S. agenda.

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What will not happened is some sort of constructive and cooperative agreements crafted out of the G20 summit that will avoid this spiral of competitive devaluation, according to Cramer.

As major world currencies depreciation against real assets, the only “currency” that will retain value is gold.

“Coming out of the G-20, I think it will be more evident than ever that gold is not a commodity but a currency,” said Cramer.

To invest in gold, he currently recommends buying gold miners with low production costs, which are companies with proven reserves and existing mines (versus a new company that must bear the cost of exploring and drilling new mines).

According to Cramer, Eldorado Gold (NYSE:EGO) and Agnico-Eagle (NYSE:AEM) have production costs of $400 per ounce. His favorite play is NovaGold (AMEX:NG), which, according to that company’s website, has “one of the largest reserve/resource bases of any junior or mid-tier gold company.”

Gold prices recently soared above $1,400 per ounce for the first time ever. Just ten years ago, it was trading below $400.

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One Response to “G20 Seoul summit means buy gold : Jim Cramer”

  1. Is a very well written post….. Thanks so much for information. ….Sorry for my English

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