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Worried About Your Portfolio? Buy The New Barrick Gold, Says Jim Cramer

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Worried About Your Portfolio? Buy The New Barrick Gold, Says Jim Cramer

(Kitco News) - Gold is the answer for those worried investors who fear the volatility in the stock markets and slowing global economic growth, said Mad Money’s Jim Cramer.

“We know gold is the winner in times of chaos and uncertainty, so if you are feeling a little bit worried about your portfolio, you might want to buy [gold,]” he said last week.

Cramer’s top picks when it comes to an investment in gold are: the GLD [SPDR Gold Shares (AMEX: GLD) — the world's largest gold-backed exchange traded product], gold mining ETFs, or the new Barrick Gold.

Cramer added that he likes the merger between Barrick and Randgold Resources Ltd., which was first announced in September and has since been approved by shareholders of both companies.

“I like the merger very much, now that Mark Bristow is in charge,” he said.

For the “prudent” investors, Cramer recommends waiting until Barrick reports its first quarter results as a combined company.

The newly formed Barrick Gold Corp. began trading at the beginning of January with a market capitalization of nearly $24 billion.

This pro-Barrick outlook is a shift for Cramer, who advised to sell Barrick and buy GLD back in July. 

Cramer told investors this past summer that “it is really hard to own the stocks,” adding, “Barrick [Barrick Gold Corp (TSX: ABX.TO)]? Sell, sell, sell.”

Despite the latest advice to buy gold as insurance, Cramer noted that it might not be the “perfect time” to buy the precious metal, adding that he always advocates some exposure to gold as “insurance against the unknown.”

Gold has been holding right below its key psychological barrier of $1,300 an ounce following a strong close to 2018. February Comex gold futures were last at $1,294.00, up 0.02% on the day. 

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.