Jim Cramer came out on CNBC’s MAD MONEY tonight, predicting huge gains in gold and he thinks that the current sub-$1,000 per ounce prices may go to $1,600 per ounce. He started talking about Basketball’s March Madness and a "Sweet 16" his "sweet 16" targets all revolve around "$16" for commodity prices.
Cramer thinks that most of these gold companies have no risk to earnings with prices rising higher and higher. His new top pick in the gold sector for new buyers that haven’t bought a gold stock is Agnico-Eagle Mines Ltd. (NYSE: AEM). He noted that it is growing production and is is the second lowest cost producer. It also has a small uranium twist. We’d note that is different than his "value pick" in gold he gave in early January, and that pick is actually up almost by 50% after a huge move today. He recently featured Agnico’s CEO on CNBC, and said he was unprepared for how bullish he felt.
If you prefer a diversified strategy in gold or other commodities, we just gave a full list of our ETF and fund universe as several new gold-related trading instruments have been formed.
Cramer also talked up agriculture yet again, but he did give a new pick. He’s also got a new pick to win from natural gas.
Jon C. Ogg
March 3, 2008