Jim Cramer's Best Blogs

There's talk that natural gas will tighten because of the lack of drilling, but Mark Papa, the best wildcatter there is and the CEO of EOG Resources (EOG), says there's no demand for the stuff, and very few plants are being built to use it. Plus, all of the power plants that can convert have already done so. If we could harness natural gas as a surface fuel, I have no doubt that gasoline would be at $2.50 rather fast, but the administration would despise that, because it would encourage fossil fuel use. We are the reason why oil is not going higher. If Iran joined the Council of Nations, oil would go to $75, but it won't, so take that off the table.

Finally, gold, is now finishing up 6% for the year despite predictions that this, the 12th straight up year, would bring the long-expected crash. Gold is the opposite of oil. There's just not enough of it. Go over the quarters of Goldcorp (GG), Agnico-Eagle Mines (AEM), Newmont Mining (NEM) and Barrick Gold (ABX). The costs are astronomical, the finds pitiful and, like oil, the only countries where confiscation isn't an issue are in North America. Everything else is dicey.

In 2013 it will be even harder to find, so gold, I believe, will have still one more up year.

Gold is endlessly described as a hedge against inflation, or a hedge against chaos, or a hedge against deflation, or a hedge against central bank reflation. Gold is a story of the worldwide middle class trying to get its hands on some precious metals to become and feel rich. There's not enough gold being found. Period. End of story.

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