Investment Wisdom From Mad Money’s Jim Cramer

Release Date:  Friday, May 3, 2019
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Gold prices saw a nice bounce on Friday

"Gold prices continue to move higher as optimism in the U.S. service sector dropped in April, according to the latest report from the Institute for Supply Management (ISM)... Gold prices were already on the uptrend ahead of the report and jumped solidly higher in initial reaction. June gold futures last traded at $1,281.80 an ounce, up 0.76% on the day.'" ("Gold Prices Push Higher Following Disappointing ISM Service-Sector Data," Kitco News, 5/3/19.)

Gold ended the week at $1,279.50. Silver closed at $15.00.

Investment Wisdom From Mad Money's Jim Cramer - TheStreet

During a member only conference call, Jim Cramer, host of CNBC's "Mad Money," was asked about investing in gold. His answer was both succinct and powerful: ""I always think that it's pretty simple for me. Nothing bad ever happens from gold. I have gold..." (""I always think that it's pretty simple for me. Nothing bad ever happens from gold" TheStreet, 4/30/19; emphasis added)

Gold Is still Best Way of Preserving Wealth - Leni

Brian Leni, founder of the Junior Stock Review, penned a commentary explaining why gold remains the best asset to preserve wealth.

"I continue to believe that gold is a must-have insurance policy, because it appears to me that things are only becoming more complex within the global economy. In my opinion, gold remains the best way to protect your wealth as we head toward major monetary changes in the future.

"I will add to this; I view a rising gold price with trepidation because, to me, this is signalling a growing uncertainty within the world, pushing us closer to this major change. I believe you must ask yourself, 'what does the world look like if the gold price is US$10,000 per ounce?' My guess is, 'not good.'...." ("Gold Remains The Best Way To Protect Your Wealth," Kitco, 5/2/19; emphasis added.)

Global Economic Turmoil To Push Gold and Silver Higher - Reuters

A Reuters poll of analysts found that several economic factors will lead to higher precious metals prices in 2019 and 2020.

"A slowing global economy, stock market turmoil, delays to interest rate rises and potential U.S. dollar weakness are expected to boost average annual gold prices to their highest since 2013, a Reuters poll found ...

"Gold prices have slipped in recent weeks to around $1,280, under pressure from a stronger dollar, which makes bullion more expensive for buyers with other currencies, and rising stock markets which offer investors better returns ... But analysts said slowing global economic growth, the increasing likelihood of stock market corrections, a pause in interest rate rises and a likely weakening of the dollar would bring money back to the metal.

"Gold is traditionally seen as a safe place to invest during times of uncertainty, as it tends to retain its value while other assets slide. 'We expect falling risk appetite and a surge in safe-haven demand to be the key factor driving both gold and silver prices,' said Capital Economics analyst Ross Strachan...

"A Reuters poll of 70 currency strategists showed they expected the U.S. dollar, which in April reached its strongest in almost two years, to slip over the coming year. The gold forecast for this year is 4 percent higher than last year's average price of $1,268 and would be the highest average since 2013...." ("Gold poised for gains as global markets brace for turmoil: Reuters poll," Reuters, 5/2/19; emphasis added.)

Gold At Bargain Prices; Targets $1500 by the Last Quarter of 2019 - Tsaklanos

Taki Tsaklanos, founding author at financial analysis provider Investing Haven, told Barron's that macroeconomic and global factors could send gold prices above $1500 by October or November.

"At less than $1,300 ... Tsaklanos considers gold a "bargain." Investing Haven's price target for the year is $1,550. The euro, 20-year Treasury rates, and traders' futures positions would all have to turn favorable for the metal if it is to rise, he says... All three have shown signs that they could boost gold later in 2019, Tsaklanos asserts. Higher inflation also would help...

"For now, gold might see further declines, given that it is entering a seasonally weak period for precious metals, with June among the year's worst months, says Tsaklanos. 'The wildcard is monetary policies of central banks,' he says, with an unexpected policy change potentially prompting a sharp selloff in the euro, which could lead to more weakness in gold.

But Tsaklanos expects 'the gold market to build up energy during the summer.' Any breakthrough, he predicts, 'is likely going to happen in October or November, and it would pave the way to $1,550.'" ("How Gold Could Stage a 20% Rally This Year," Barron's, 5/3/19; emphasis added.)

Stock Sell-Off Will Send Gold Prices to Six Year Highs - Capital Economics

Capital Economics, a leading global economic research company, is forecasting gold prices to rise to their highest levels in six years as investors sell off stocks.

"'We think that global growth will remain subdued and forecast that the S&P 500 will fall to just 2,300 by end-2019,' economists at Capital Economics wrote on Tuesday. 'Surging safe-haven demand is likely to drive the prices of both gold and silver higher this year.'"

"Gold is likely to rise to $1,400 an ounce by the end of the year, said Capital Economics while pointing to slower global growth throughout this year. 'While the world economy grew by 3.6% in 2018 as a whole, it lost momentum throughout the year. Q1 2019 looks to have been even weaker. The manufacturing sector has borne the brunt of the downturn ...There are a few signs that the slowdown may be bottoming out at the global level...." ("Gold To Surge To 6-Year Highs As S&P 500 Plummets By Year-End - Capital Economics" Kitco, 4/30/19; emphasis added.)

Gold is Critical Protection; New Highs Coming - von Greyerz

Egon von Greyerz, Founder and Managing Partner of Matterhorn Asset Management, analyzes gold's role as real money during economic uncertainty and collapse.

"Why do 99.9% of investors not own gold? Due to my interest and activity, I clearly meet a higher percentage than the 0.1% who both understand and own gold. But I also meet a lot of people who have been indoctrinated by their investment advisors and the media about gold's uselessness. Most of these people don't understand gold and don't know the history of gold, nor its role as money.

"So let's list some of the facts without being too long-winded:

"Gold has been money for 5,000 years.

"Gold is the only money that has survived in history.

"In every major crisis, gold has been used as money. In all periods of history, fiat money has always lost 100% of its value. Fiat means money issued by government not backed by anything as opposed to gold or silver... 

"In the 2000s gold has outperformed all major asset markets including stocks...

"So when will the uptrend in gold start again? ... Many of us did not expect gold to pause for 8 years. But having been seriously invested in gold for over 17 years since early 2002, we have patience. So the only short term method to predict gold's next move is looking at gold's technical picture. This tells us that gold is now in the finishing stages of a corrective move.

"Once the correction is over and gold breaks the Maginot Line at $1,350, we will see a quick move to $1,600. I would not be surprised to see gold making new highs in 2019 against the dollar, above $1,920. The next move up could start as soon as in the next 2-3 weeks. Possibly, but less likely is that the move starts August - September.

"But gold should not be bought for speculative investment purposes. Gold should be held as wealth preservation or insurance against a rotten financial system that is unlikely to survive in its present form.

"Like any insurance, holders of gold should not hope for gold to surge. Because when it does, the world will be a much more unpleasant place to live. It is much better to enjoy the present times knowing that if and when the problems in the world start in earnest, you are protected..." ("The Gold Maginot Line Will Soon Break," Gold-Eagle, 5/2/19; emphasis added.)

World Banks Are Moving from US Dollar to Gold - World Gold Council

In its most recent report, the World Gold Council explained that global demand for gold rose in the first quarter of 2019 with world banks leading the way.

"Global demand for gold jumped rose in the first quarter as central banks moved away from the US dollar amid concern over global trade wars. The World Gold Council said demand rose 7pc to 1,053.3 tonnes compared with the same period in 2018 as central bank buying soared 68pc to 145.5 tonnes. That was the best performance for the first quarter in six years.

"The council's Alistair Hewitt said: 'We're expecting another good year for central bank purchases, although I'll be pleasantly surprised if they are to match the level seen in 2018.' Its quarterly report said 'diversification and a desire for safe, liquid assets' were the main drivers of the purchases... The bullion buyers are dominated by countries looking to reduce their dependence on the dollar, and typically have fewer reserves in gold than nations in western Europe...." ("Soaring demand from central banks boosts gold market," The Telegraph, 5/2/19.)

India Buying Expected to Raise Gold Prices - MoneyControl

India is one of the largest consumers of gold. As such, their buying habits can affect global prices. Unsurprisingly, the World Gold Council believes that gold prices will rise in June due to India's wedding season.

"India's gold demand is expected to rise in the June quarter from a year ago due to a higher number of auspicious days for weddings and a fall in local prices ahead of a key festival, the World Gold Council said on May 2. A rise in consumption by the world's second-biggest gold consumer could help global prices, currently hovering near a 4-month low, but could widen India's trade deficit and put pressure on the rupee.

"'Prices are attractive. In the second quarter we might see a surge in demand due to Akshaya Tritiya and higher auspicious days for weddings,' said Somasundaram PR, the managing director of WGC's Indian operations. Weddings are one of the biggest drivers of gold purchases in India as bullion in the form of jewellery is an essential part of the bride's dowry and also a popular gift from family and guests..." ("Weddings, lower prices could lift Indian gold demand in June quarter: WGC," MoneyControl, 5/2/19.)

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