“We are big gold believers here. Now gold is at $1,300, we think gold is going to $1,400-$1,500. We suggest that everybody have a little bit of gold in their portfolio,” Cramer said on Wednesday.
The big news of the day was the Federal Reserve keeping rates unchangedat a range between 2.25% and 2.50%.
Cramer pointed out that the Fed Chair Jerome Powell did the right thing by focusing on “patience” when it comes to future rate hikes.
“Don’t listen to the Fed watchers who claim that Powell caved to the stock market or the president,” Cramer said. “The only thing Powell caved to is reality … This is about the economy — who doesn’t want a healthy economy? If Powell had stuck to his plan for a series of lockstep rate hikes, it would’ve been a lot more devastation to Main Street than to Wall Street.”
When asked about the First Majestic Silver Corp. (NYSE: AG) during Mad Money’s Lightning Round on Wednesday, Cramer said he likes gold better than silver, but added that silver is also likely to go up.
“Silver’s trading up with gold. I prefer gold. My recommendation is to buy [the new] Barrick, not [First Majestic Silver Corp], but silver’s going higher,” he said.
The SPDR Gold Shares (GLD) was trading at $124.97 per share on Thursday morning, up $0.28 (+0.22%). Year-to-date, GLD has gained 1.07%, versus a 1.29% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kitco.