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.

Comments

1. Gold vs Berkshire since this interview (may 5 2011): Gold -24%, Berkshire: +80%
2. Compare gold vs Berkshire over he past 40 years or compare the market in general vs gold over the past 50 years. Gold is an unproductive asset that relies on fear for appreciation. Buffett agrees that paper money will always devalue over time, he just disagrees with gold as an alternate.
3. Interesting comments by Kramer, sounds like he's on board with gold investments too, good to know.
4. Gold is not for investment - its for SECURITY. Craimer is not getting it.
5. as long* not "has"
6. Exactly, now hopefully the billion and million dollar silver investors dont try to screw with the price fluctuation, but thats like asking people not to piss on a tree when camping. Im sure were in for some surprises with precious metals however has long as the Industrial demand remains high It seems we'll see increased values on these "finite metals" Its time for us all to start our own banks in our cellars, in a post apocalyptic world paper is fire kindling and plated coins are fishing weights
7. Investing in physical ultra pure bullion Silver and Gold may be ridiculous considering how hyped up they are right now, but then again most global government currencies are not worth the paper or Zinc plated coins they are printed on. Many economies of the past have collapsed US depression, Mexico, now Spain and Greece. You just wake up and the government tells you your currency isnt worth jack shit. If gold and silver are failing it means the world is failing and stagnant.
8. Difficult to say whats gonna happen with Gold and Silver. Both are at all time highs which could just be crazy over speculation on the worth because of people hoarding it away only to flood the market later and devalue everyone who bought gold at later than the early 2000s. Or the reality that global industrialization has created enormous demand for high end electronics requiring these materials and the price per troy oz of silver will never go back to $4. Its a crazy turbulent time to invest.
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10. @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.
11. @dkt80 Golds most fundamental use is as money. Its works better as a currency than fiat because it doesn't carry any counterparty risk.
12. @dkt80 Gold derives its value from commercial uses and its use as money. Both types of buyers bid the price up.
13. @luvbeingfree Do these commercial uses equate to a value of $1,500/oz?
14. @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.
15. @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.
16. @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
17. @watercup123456 huh?....srryy I was to busy fuckin ur mom
18. @superoriginalname What's that loser? I raped you with facts? Yes I did :-D Fucking trolling piece of shit ROFL You got nailed :-D
19. @watercup123456 lol listen asshole instead of trying to figure out gold- figure out why u sound like a little bitch.
20. @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.