On April 16th, the day after the gold price bottomed, Cramer had this to say about the gold market, identifying that it was extremely oversold, but hesitant to got out on a limb and suggest that his viewers buy.
I wish Cramer had had me on his show as the previous day I published an article right here on Seeking Alpha calling for an all-time high in gold above $2,000/oz within 12 months. He probably would have ridiculed me, like only Jim Cramer could, and it would have made for great television.
It is said that all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident. As a contrarian investor and author, I'm well familiar with these stages.
My article clearly identified the reliable history of gold to not only rebound from an oversold condition, but achieve a new all-time high within just seven months of bottoming.
At some point in the near future, I'm expecting Cramer to jump fully on board the gold bandwagon. Because gold mining stocks have already been rising far more in percentage terms than the metal itself and will continue to do so, I expect Jim to be jumping up and down screaming to "BUY, BUY, BUY gold mining stocks".
As of this week, junior gold mining fund GDXJ has already rallied 20% from its bottom of just three weeks ago...and it's just getting warmed up. This should be no surprise, as history has proven this behavior to be the norm rather than the exception as was pointed out in my recent article, "The Anatomy of a Gold Mining Crash... And Recovery".
I love when Cramer gets excited. This YouTube clip of him telling investors that he's "buying the market, right here, right now because I know more than anybody" is classic. I look forward to seeing him say the same about gold stocks, sometime between now and when they peak over the next 6-12 months.
Disclosure: I am long GDXJ.