This morning on MSN Money, Jim Cramer seen on CNBC Mad Money and The Street, posted his comments on gold.\u00c2\u00a0 He said, \u00e2\u20ac\u0153Don’t be distracted by attempts to correlate gold with global events or interest rates. The rush is as simple as supply and demand.\u00e2\u20ac\u009d\u00c2\u00a0 I have been saying this for a while now.\u00c2\u00a0 The talking heads keep trying to correlate gold with global events like a weaker\/stronger dollar or fears of inflation.<\/p>\n
Jim said, \u00e2\u20ac\u0153Two weeks ago, gold was supposed to be weak because the dollar was strong. Last week, gold was supposed to be weak because interest rates were up. But gold is going higher because of demand wholly separate from these correlations.\u00e2\u20ac\u009d\u00c2\u00a0 The truth is gold is in a bull market and is acting like it.\u00c2\u00a0 Gold will trade inside of a trading range<\/a> just like any other asset, but it is the underlying trend that is important.<\/p>\n Yes gold goes up when the dollar gets weaker and goes down when the dollar gets stronger but the trend is based on supply and demand.\u00c2\u00a0 Gold\u00e2\u20ac\u2122s demand is extremely strong.\u00c2\u00a0 China is encouraging their population to buy gold coins<\/a> and they are importing more gold than ever before.\u00c2\u00a0 The US mint said that it has too much demand for silver coins and that it is worried about scalping because of the shortage of physical silver.\u00c2\u00a0 This demand is steadily increasing worldwide.\u00c2\u00a0 When the general public moves into gold in a big way, watch out.<\/p>\n Jim said he was recently blasted on twitter when he said to buy gold in the dip.\u00c2\u00a0 The twitter post proclaimed that he should not be telling people to buy into the top.\u00c2\u00a0 Jim had this to say in response, \u00e2\u20ac\u0153Did we find much more gold? Is there less of a demand?\u00c2\u00a0 There might be a moment next year when we see a dip in gold, when the International Monetary Fund has to sell some in order to shore up Greece, Spain, Ireland and whatever country the bond vigilantes hit next. That’s a real supply issue.\u00e2\u20ac\u009d<\/p>\n