Jim Cramer Prefers Gold to Bitcoin for Portfolio Insurance, but Backs 2 ‘Vetted’ Cryptos

CNBC host Jim Cramer told a young investor he prefers gold bullion to Bitcoin (BTC) for insuring a portfolio. However, he did not dismiss Bitcoin entirely and named two cryptos he calls ‘vetted.’

The split verdict came on Mad Money, where Cramer spent an episode laying out his investing rules. Meanwhile, he warned against low-quality tokens in the same show, leaving gold as his hedge and two coins as exceptions.

Why Does Jim Cramer Prefer Gold to Bitcoin?

A caller named Jacob said he had spent much of his investment money on a home down payment. He asked how to rebuild.

Cramer advised splitting new money evenly between index funds and five stocks the caller likes.

He added that Bitcoin or gold could insure that mix. He prefers gold bullion, or SPDR Gold Shares (GLD), a gold exchange-traded fund (ETF), if bullion is out of reach.

However, Cramer did not call Bitcoin a poor hedge. He only stated a preference.

Robin Brooks, a senior fellow at the Brookings Institution, shares the gold-first view. He wrote in August that he would avoid Bitcoin and does not see it as a safe haven.

In contrast, investors bought both in August. Bloomberg ETF analyst Eric Balchunas reported record five-day inflows of $7 billion into gold and Bitcoin ETFs.

The flows fed a 60/40 portfolio debate about the traditional 60% stocks, 40% bonds mix. Bitwise Chief Investment Officer Matt Hougan argued that stocks and bonds are both priced in dollars.

Why Do Two Cryptos Pass His Quality Test?

Cramer tied the crypto remark to quality. He said investors lured by perceived bargains, from penny stocks to junk tokens, risk losses.

Instead, he said, buyers could simply choose Ethereum or Bitcoin. Yet when he reached for a hedge, he listed Bitcoin beside gold and then chose gold.

Cramer has also tied his recent Mad Money picks to rising interest rates.

With money flowing into both assets, the question of which one insures a portfolio remains open among traditional-finance voices. The comments are Cramer’s opinion, not investment advice.