HomeBusinessTake advantage of gold’s impending comeback with this best-of-breed stock, Cramer says

Take advantage of gold’s impending comeback with this best-of-breed stock, Cramer says

CNBC’s Jim Cramer on Wednesday said that he believes gold will make a recovery, and there’s one company in the industry that investors should consider adding to their portfolios.

“I bet the precious metal can make a comeback. If I’m right, then the one to own is best of breed Barrick Gold, which I think is a steal down here,” he said.

Gold is often seen as a safe-haven stock during times of economic uncertainty and considered a hedge against inflation.

The “Mad Money” host said he recommends Barrick Gold in particular because he likes the company’s management, clear strategy and geographically diverse portfolio of gold mines. More importantly, Barrick has a “terrific” dividend and cheap stock, Cramer said. 

Shares of Barrick Gold rose slightly on Wednesday to $19.56, still below its 52-week high.

As for why he’s bullish on gold more broadly, Cramer explained that gold saw a boom during the height of the Covid pandemic, but it has since cooled off as crypto enthusiasts have pushed the digital currency as a more fun, profitable “store of value” stock. Crypto as a result roared higher in 2020, he said.

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However, this year has seen a huge sell-off in crypto as investors flee the once-lucrative market – and Cramer believes the investors will run straight to gold. 

“I’m not necessarily saying crypto is toast, although practically everyone I spoke to in Silicon Valley now seems to think that the whole industry is just one big con. What matters is you can’t seriously argue that something like bitcoin is a hedge against inflation,” Cramer said.

“The bitcoin boom sucked the life out of gold as an investment, but maybe the crypto bust can bring it back,” he added.

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