Bad News, Gold Bugs! Jim Cramer Thinks It’s “The Perfect Time” To Buy Gold

Jim Cramer, the energetic host of CNBC’s Mad Money, declared on Wednesday that it’s the “perfect entry time to do some buying.” Cramer based this on charts that legendary market technician Larry Williams developed.

He explained that Williams believes that when small spectators get too bullish on gold, this often indicates that it’s about to peak. Conversely, when these small spectators become too bearish, it tends to indicate that the precious metal has reached or is approaching the bottom of a cycle.

Exhibit A was the gold rallying past the US$2,000 mark in March just as small spectators were long 200,790 contracts, their biggest net long position in four years. These small spectators are currently in their smallest long position since May 2019, which was also just before a gold price rally.

Cramer also pointed out that gold tends to react to fluctuations in oil prices more than any other inflation indicator.

“Price of oil pushed forward by eight weeks has been very powerful for predicting the price of gold in the past. Williams says that based on the price of oil in the next eight weeks, now is the time to buy gold. His forecast says it should be ready to rally here,” he said.

What he believes is that when it comes to the precious metal, Williams knows quite a bit about spotting a bottom. 

After the peak in March, gold has struggled to regain an upward trajectory as the Federal Reserve raised interest rates, but the precious metal begun to move upward by the middle of July. As of this writing, gold is up 0.77% at US$1,787.00. 

But per Cramer Inverse rules, things have yet to unfold.


Information for this briefing was found via Twitter and the companies and sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

America Uses More Copper Than It Makes | Simon Quick – Canadian Copper

Gold Bulls Run Faster Than New Mines?! | Thomas Mumford – Scottie Resources

Is This the Start of a New Gold Rush | Russell Ashton – Juggernaut Exploration

Recommended

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Altamira Gold Encounters Porphyritic Intrusive Rocks In Initial Scout Drilling At Regional Targets

Related News

Reunion Gold To Raise $3.0 Million In Brokered Financing, Expands Non-Brokered Financing

Reunion Gold Corporation (TSXV: RGD) announced today that it has launched a marketed private placement...

Tuesday, April 27, 2021, 09:51:00 AM

Gold Production In Costa Rica – The Daily Dive feat Ryan Jackson

Today on the Daily Dive, host Cassandra Leah sits down with Ryan Jackson, CEO of...

Monday, November 23, 2020, 01:00:00 PM

Labrador Gold Drills 20.60 G/T Gold Over 3.6 Metres At Kingsway

Labrador Gold Corp. (TSXV: LAB) announced today the first intercepts of near-surface gold assays from...

Thursday, June 3, 2021, 09:21:00 AM

Trillium Gold To Commence Drill Program At Rivard Property

Trillium Gold Mines (TSXV: TGM) is set to begin drilling its 100% owned Rivard property...

Thursday, January 21, 2021, 08:30:24 AM

Trillium Gold Further Consolidates Red Lake District, Acquires Quebec-Based Properties

Trillium Gold Mines (TSXV: TGM) this morning announced further significant increases in its landholdings across...

Monday, January 18, 2021, 08:02:37 AM