NEW YORK (TheStreet) -- TheStreet's Joe Deaux and Jim Cramer discuss the continued pressure on prices of gold and how investors should gain exposure to the yellow metal.

Cramer does not like gold stocks. Period. He no longer advises gaining exposure via the

SPDR Gold ETF

(GLD) - Get Report

and says that investors should absolutely avoid stocks of gold mining companies.

"You look at the cost of gold going down, you look at the mining costs going up, that's a classic margin squeeze," he said, regarding why the miners make terrible investments.

But there is one way to play gold that Cramer

does

endorse: coins.

"I'm willing to insure four-fifths of my portfolio, with one-fifth of my portfolio," he added, citing the insurance-based benefit of owning gold.

Cramer stated that should gold stocks rally, they should be sold. They have been "toxic" and are different than owning the physical gold, he said.

Deaux added that he's been talking to some traders who are holding onto their physical gold positions while dumping the paper ones (i.e., gold stocks).

The gold supply hasn't changed much, but the demand from buyers has dropped. Most notably, China seems to have stepped away, and India has discouraged the purchasing of gold, Cramer said.

He concluded that while gold is currently broken, it will eventually bottom and may get an oversold rally, citing a

RealMoney

article by Carley Garner as the base of his thesis.

-- Written by Bret Kenwell in Petoskey, Mich.

.

Follow @BretKenwell

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in stocks mentioned.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.