Jim Cramer Says Buy Barrick Gold
Gold is surging Tuesday, hitting its highest level in nine years.
And it's based on fears around the coronavirus.
Jim Cramer weighs in on the gold rally that we're seeing in the markets.
Real Money, TheStreet's sister site, weighed in on gold at this time.
"The gold stocks are undervalued now. The producers are very cheap. Right now, they have the benefit of higher gold prices, and lower oil prices, as well as generally lower commodity currency prices making costs lower even as gold, moves up," wrote Adrian Day of Adrian Day's Global Analyst. "Most of them have better balance sheets now than did few years ago. The exploration stocks are also very cheap, but they need to be cashed up. It is difficult to raise money at a reasonable level now. In addition, the producers will tend to recover before the exploration companies do."
And Pierre Lassonde, chairman of Franco Nevada, thinks that gold at $20,000 isn't out of the question.
“When I look at where we are today, the money creation will take time to [money] into people’s hands. I look at supply chain disruption, I think we’re looking at a two to five year period and I do believe that we will see, if not one to one [in the Dow/gold ratio], then very close to one to one,” Lassonde told Kitco News.
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