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Americans gotta have their bling, and if you can't afford a diamond, you'll buy something from Charles & Colvard ( CTHR), Jim Cramer said Thursday on "Mad Money."

Charles & Colvard's synthetic moissanite jewels cost one-tenth the price of a diamond but are "more brilliant and more lustrous than diamonds," he said. Moissanite jewelry is carried at more than 700 J.C. Penney ( JCP) stores, said Cramer, and it is being tested at Zale ( ZLC) stores and Helzberg, owned by Berkshire Hathaway ( BRK.A).

Cramer doesn't believe moissanite will penetrate the high-end diamond market, which is in an "unbelievable bull market." He would recommend Anglo American ( AAUK), which owns 40% of De Beers, as the best play on real diamonds. But Cramer said high-end and low-end jewelry market can work at the same time as we become a class society, and because "at least in the medium term, America is not going to have a strong economy."

Charles & Colvard has posted triple-digit growth since the third quarter of 2004. For 2005, earnings are expected to be up 274%, Cramer said.

"This is the right kind of company with the right kind of product and the right kind of stock," he said.

In response to a question about the high short position in Charles & Colvard, Cramer said the stock "feels a little Hansen ( HANS)-like" in that shorts "don't believe it can get better."

In response to a question about Tiffany ( TIF), Cramer said he believes Tiffany might be ready to bounce back, and he is "upgrading Tiffany right here, right now."

Water, Water, Isn't Everywhere

A natural resource even more scarce and precious than diamonds is water, said Cramer. That may seem counterintuitive, since 70% of the earth's surface is covered by water. But it costs money to make fresh water potable, and desalinization has yet to become economical on a large scale.

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