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Jim Cramer: Gold Is Losing Its Luster To Bitcoin

Kitco News

(Kitco News) - Bitcoin's unprecedented 1,000% this year has taken the shine off gold, but the yellow metal still has a role to play in a portfolio, said CNBC's Jim Cramer.

While showing some concern for the cryptocurrencies parabolic rise, Cramer admitted that it has taken gold's luster this year.

"Gold has kind of lost its moment here," he said in a recent fireside chat on his show Mad Money.

For the last two months, gold has been stuck in its narrowest range in more than a decade. The yellow metal has been unable to break above key resistance at $1,300 an ounce as it not only competes with Bitcoin but record equity markets and resurging momentum in the U.S. dollar.

However, despite its recent stalled performance, gold is up more than 10% since the start of the year. While trapped in a range, many analysts have noted that despite significant headwinds, gold prices remain resilient, holding above key support levels. February gold futures last traded at $1,276.60 an ounce, down 0.44% on the day.

Although gold currently lacks momentum, Cramer said that he still recommends that investors hold up to 10% of their portfolio in gold.

Cramer has been fairly negative on the digital, saying that he doesn't think the gains above $11,000 will last. aggregated Bitcoin charts showed the price last traded at $11,285.

"Even if you believe in bitcoin, the velocity of the move is a sign that it is parabolic. And parabolic moves don't last," Cramer said recently on CNBC's Squawk on the Street.

Bitcoin continues to gain investor attention. Last week CME Group said that they will launch cash-settled Bitcoin futures on Dec. 18.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.