Mad Money's Cramer Bashes Buffett on Gold Investing

Complete video at: http://fora.tv/series/92y_business_finance

"Mad Money" host Jim Cramer bashes Warren Buffett's stance that the gold market isn't a sound long-term investment because the precious metal has no utility. While Buffett snubs the value of gold, Cramer emphasizes the limited amount available, as well as the lack of new gold being mined.

-----

Experience talks, conversations and readings from the 92nd Street Y's vast archive, featuring Nobel Laureates and world leaders, giants of literature and science, legendary entertainers and artists, and the fascinating people who have graced the Y's stage over the last 75 years.

The Economist's Matthew Bishop grills a panel of bullish gold investors on whether there really is a bright future for the precious metal.

Panelists include Jim Cramer, co-founder and markets commentator for TheStreet.com and popular host of CNBC's Mad Money; John Hathaway, a leader in the gold investment sector as well as manager of a series of private gold-oriented accounts and gold funds for the Tocqueville Funds; and Thomas Kaplan, a prominent natural resources investor and chairman of the Electrum Group of companies.

Category:

News & Politics

Tags:

• warren
• buffett
• invest
• sell
• buy
• gold
• investing
• long
• term
• investment
• bubble
• mad
• money
• jim
• cramer
• 92y
• foratv
• fora.tv
• fora
• tv

[edwardwills]

This actually scares me that Cramer is bullish on gold!!

[vanessablackjack]

Trade GOLD and earn as much as you want!!Turn money into gold and gold into money at Gold Trading Academy. Come watch the proof of 90% accuracy in gold trading, google Gold Trading Academy to learn more.

[dkt80]

@luvbeingfree That is of course true; my point is that the price is artificially inflated by investment expectations, particularly since gold is viewed as a countercyclical investment.  This is largely a self-fulfilling prophecy. People buy gold when equities are down, thus making it countercyclical in the first place. This creates risk, since the price is inflated precisely when the actual commercial/industrial demand is low.

[luvbeingfree]

@dkt80 Golds most fundamental use is as money. Its works better as a currency than fiat because it doesn't carry any counterparty risk.

[luvbeingfree]

@dkt80 Gold derives its value from commercial uses and its use as money. Both types of buyers bid the price up.

[dkt80]

@luvbeingfree Do these commercial uses equate to a value of $1,500/oz?

[luvbeingfree]

@dkt80 Gold has intrinsic value. It's the only element that doesn't oxidizes under normal conditions. It is one of the best known conductors of heat and electricity. Also, it's the most malleable and ductile metal on earth. It has many industrial applications. For example, it is in every computer. It is the most liquid asset on the planet. It's accepted worldwide. It is also heavily manipulated to the downside.

[dkt80]

@tompaulcampbell You can't eat gold or silver. In fact, there's very little you can do with them. I agree fully that US government-issued paper is just a confidence game, but right now I'd rather have that than a useless lump of metal. As a matter of practice, it's easier to trade the paper for things that have real value to me, like houses and cars and steak and bread.

Gold has been a pretty decent investment, but I'd rather invest in something that has intrinsic value, like Gillette or oil.

[watercup123456]

@superoriginalname You like to fuck corpses?

Sick fuck.

My mom is dead you corpse fucking piece of shit.

ROFL what a fucking trolling moron.

Thanks for once again bending yourself over and allowing me to rape you with the facts :-D

[superoriginalname]

@watercup123456 huh?....srryy I was to busy fuckin ur mom

[watercup123456]

@superoriginalname What's that loser?

I raped you with facts?

Yes I did :-D

Fucking trolling piece of shit ROFL

You got nailed :-D

[superoriginalname]

@watercup123456 lol listen asshole instead of trying to figure out gold- figure out why u sound like a little bitch.

[watercup123456]

@superoriginalname Dude, THERE IS NO GOLD STANDARD.

The usa dollar is a backed by NOTHING, it is just paper. Paper that EVERY country uses.

WTF are you talking about.

We are on a barter system NOW: "I give you X dollars for X blowjobs." That's a trade. Instead of trading a cow for blowjobs, or raw gold, you are trading paper notes for your goods/services that can in turn be traded for other goods/services.

Did you even go to school? Christ.

[tompaulcampbell]

@dkt80 Well, because it, and silver ARE the only really money. Everything else is based on confidence and since cash is being printed based on NOTHING, our the value of or cash is greatly reduced. I recall in the early 80's a janitor could by a good sized house in California. Who can now?

[tompaulcampbell]

Wow! I actually agree with this guy over Buffett! Especially since the market is going to crash, it's just a matter of time.

[LibertyDownUnder]

@xlUIblisUlx, you are correct but I'll clarify my point.

The over-leveraged companies will benefit during the expansion of credit, but then suffer when interest rates are raised significantly by central banks in order to fight inflation.

This in what happened in 2006-2008 in the US. Banks were "addicted" to the easy credit in 2002-2006, and then took a hit when the rates went up.

Over the last decade the value of the stock market, measured in gold, dropped from 40 ounces to 10.

[xlUIblisUlx]

@LibertyDownUnder You missed the point. In fact, what you're saying is false. Leveraged companies will do better if there is an increase in inflation, because their debts will be worth relatively less. To reiterate, if each unit of currency is worth less, then debts, which are static, will decrease in relative value. An increase in interest rates will simply discourage companies from taking on NEW debts.

What little practical value gold still has will diminish as it increases in price.

[dkt80]

@Chriseycarlyeah324 Ahaha. You might have just inadvertently answered my question there.

[Chriseycarlyeah324]

@dkt80 its shiney hard to find and it does not rust the question is why you would not want it!!!

[dkt80]

What is gold good for, fundamentally? I mean what can you do with it? Why would you want to have it?

[BlankBrain]

My aunt bought $220,000 gold from Lear when it was lower. Now that it's up, just sold for $92,000. Not a good investment, I'd say.

[LibertyDownUnder]

@xlUIblisUlx, in many cases you'll be correct, companies overall will be worth more in terms of dollars. But no one knows which ones and when.

High inflation causes banks to raise interest rates, which can wreak havoc on markets. Companies who are leveraged, or depend on leveraged customers/suppliers - will suffer, and many could even fold.

Gold has been used as currency for over 5000 years, and is unlikely to be replaced.

[xlUIblisUlx]

@LibertyDownUnder Using protection from inflation as a reason to buy gold is rather silly. All you are positing is that because each unit of currency is worth less, currency:gold will be higher. The same argument is entirely transferable to a company: Inflation will cause companies to adjust the price of their products, revenues will increase, and the stock will be repriced to reflect this.

The difference between gold and a company is that gold can be scarce, but gold is far from irreplacable.

[timgeerdes]

@h2321 That's the same logic people were using prior to 2007 with respect to homes. "Housing prices never go down because they are houses" How is it that this may not also be the case with gold? I am not saying that it is for sure, and I am not saying gold is useless, or a bad investment, or what have you. All I am saying is that... it isn't that simple.

[timgeerdes]

@h2321 Water is not an acceptable comparison. Water is a necessity, gold is not. Additionally, the funds gained from someone paying their water bill doesn't go to pay for the water itself so much as it is used to cover the cost of the infrastructure necessary to make that water clean and immediately available.