Cramer's New Gold Stock (ABX, NEM, AUY, BHP)

On tonight’s MAD MONEY on CNBC, Jim Cramer reviewed a stock that offers both protection and upside:

Barrick Gold (NYSE:ABX) has the most upside according to Cramer in gold stocks.  The weak dollar is driving up gold prices in dollar terms, and he thinks the yellow shiny stuff itself is heading higher and even said he thinks you could see $1,000.00 gold.  Barrick is not going to hedge going forward after having been hedged for many years, and Cramer thinks this is a bullish signal on their opinion of gold.  Their costs have risen significantly to find gold, but the company has been able to hold costs against revenues and they have less political risk mining geographics.

Cramer said he used to prefer Newmont (NYSE:NEM), but he’s disappointed that it hasn’t converted on growth.  Barrick closed at $39.41, and its 52-week trading range is $26.94 to $41.34.  After Cramer discussed this it rose nearly 2% in after-hours to $40.10.

• In the past, Cramer has been a big fan of Yamana (NYSE:AUY).
• Last week we had that huge anticipation of the largest mine announcement from BHP Billiton (NYSE:BHP) in Australia.

Jon C. Ogg
October 3, 2007