‘The washout is nearly complete’: Jim Cramer

Hyperbolic financial news host Jim Cramer recommends buying gold coins and sees the mass exodus from gold as a sign it is time to get back in.

“I’m a big believer in owning gold as an insurance policy,” the CNBC news host said on Friday.

“As the precious medal is higher during bouts of inflation and economic calamity, that send it higher. Buy gold coins; it’s the only way.”

Cramer sees a deal at gold’s current price levels.

“It’s been a real dog, down 30% from the high, pounded relentlessly. It is a total house of pain.”

Looking at future contracts, Kramer sees a mass exodus from gold, which could signal a bottom.

“The wall street players are currently holding the smallest net tons in gold since 2009. Okay, that’s pretty amazing. Collectively they have a net position of 43,000 futures contracts.

“It’s a shocking figure. They have held net long positions of 200,000 contracts. They’re leaner, plus the small speculators have given up almost entirely, holding just 423 contracts. That’s next to nothing. Why is it so important? They tell us the washout is nearly complete.”

Seeing Cramer in the gold camp is discombobulating Peter Grandich.

“I thought I could lock the liquor cabinet finally after Friday’s key reversal in gold, but then I learned the two biggest showman on financial TV made positive comments on gold on the anti-gold network. ‘Honey, where’s the key to the liquor cabinet?'”

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