Jim Cramer Defends Gold on CNBC

This morning, on CNBC, Jim Cramer stated that he still believes in gold as an investment. Yesterday, the price of the yellow metal took a sharp hit, selling off by nearly $75 an ounce. Still, Cramer said he continues to believe in gold, as all the reasons it has rallied in the last few years--low interest rates for one--are still there. Cramer stated that every time gold pulls back, someone says "gold is over" and they have been wrong for 11 years. Cramer also cited rising demand in China, and the increasing difficulty of mining for new gold.