The Conversation (0)
Cramer Warns: Beware of Gold Royalty Trusts; Gold Market Frozen
Apr. 16, 2013 10:45AM PST
Precious MetalsOn Tuesday’s Mad Dash with CNBC’s Jim Cramer, the discussion of gold’s Monday plunge had Cramer warning investors that the gold market is frozen and they should be wary of gold royalty trusts.
On Tuesday’s Mad Dash with CNBC’s Jim Cramer, the discussion of gold’s Monday plunge had Cramer warning investors that the gold market is frozen and they should be wary of gold royalty trusts.
Cramer commented that:
I also want to warn people that you’ve got to be careful even of these gold royalty trusts because if you’re a gold miner, you’re not going to start a new mine right now. So, the gold market is being frozen.
Cramer pointed to a Goldman Sachs note which suggested that base metals were closer to reaching bottom than oil, and that market players are also looking to natural gas as an alternative short-term haven.
Cramer cautioned investors, that as far as natural gas as a haven goes:
If it gets warm for a couple of days, that won’t be much of a safe haven.
