Jim Cramer continues to state that gold prices will rise and that the increase in price is not an ETF driven bubble. Jim touts the “incredible” demand from China, where the climbing price hasn’t hindered buying at all. Jim says, “I think this is a real move, I think it goes much, much higher.”
Why? Jim notes that worldwide supply is constrained, with few new viable mines coming online, and that the big buyers in China and India are not buying the GLD ETF. The Chinese and Indians aren’t buying the SPDR Gold Shares ETF (NYSE:GLD), they’re buying the gold itself, taking the wind out of the ETF bubble argument.
See the segment below: