Thank you for adding one more piece of evidence to the theory that the American Higher Education system is failing us.
What does Cramer's advice mean anyway? It's completely useless. He often gives investors a look behind the scenes of Wall Street for all things immaterial, but then he will sucker a bunch of his followers into buying something that institutions are pimping him out to pump so they can unload. So why even reference Cramer? He's completely irrelevant. 10% gold? Are you kidding?
What if everybody in the world had 10% in gold? It wouldn't be possible, because gold we be so overinvested that we'd all be carrying around dust in our pockets. Not really too practical to use tweezers to exchange gold dust, Joe Scholar-Pack.
Gold used to have a lot more value than it does now. In today's modern economy, it has never been more useless. Meanwhile, there is a massive direct-to-consumer advertising campaign to convince them that gold will keep going up as it has done for the last 10 years. The last time I saw such a concerted effort to get the masses to buy anything was in 2004-2005 when every other late night infomercial was teaching people how to master the real estate market and become instantly wealthy.
Gold is about to start a new 10-15 year period of getting beat by the market. Very few people are willing to say that, which is exactly why it's going to happen. Gold is a terrible investment at these levels, so you better hope for a last pop to unload, because it's highly probable that the price is going to start to crumble.
So your theory is that we printed so much money that gold cannot be used as a currency to back it all. Therefore, since we printed so much money, gold is worthless and useless?
Does that actually make sense to you?
Here is an alternate theory. The whole world uses gold as money. We printed so much paper money that it will buy a whole lot less gold in the near future. There is zero problem backing paper money with gold. You just prefer to think it has to happen at the present value and not at $5000-$10000 an ounce as everyone here has been saying for years.
nice comparing apples to oranges dummy! the real estate market was supported by big government via fannie mae, freddie mac and tax deductions -- don't think I can get a loan guarantee from Master Obama to buy some gold DUMMY