Gold Takes Cramer’s Hedge Crown, but $BTC and $ETH Clear the ‘Vetted’ Bar

CNBC host Jim Cramer told a young investor that he prefers gold bullion to Bitcoin ($BTC) for insuring a portfolio, while naming two cryptocurrencies—Bitcoin ($BTC) and Ethereum ($ETH)—that he calls ‘vetted.’ His split verdict came during an episode of Mad Money, where he laid out his investing rules and warned against low-quality tokens.

The caller, Jacob, said he had spent much of his investment money on a home down payment and asked how to rebuild it. Cramer advised splitting new money evenly between index funds and five stocks the caller likes, adding 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. Cramer did not call Bitcoin a poor hedge, only stated a preference.

Robin Brooks, a senior fellow at the Brookings Institution, shares the gold-first view, writing in August that he would avoid Bitcoin and does not see it as a safe haven. Investors, meanwhile, bought both assets in August. Bloomberg ETF analyst Eric Balchunas reported record five-day inflows of $7 billion into gold and Bitcoin ETFs.

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

Cramer tied his crypto judgment to quality, warning that investors lured by perceived bargains—from penny stocks to junk tokens—risk losses. Instead, he said, buyers could simply choose Ethereum ($ETH) or Bitcoin ($BTC). Yet when he reached for a hedge, he listed Bitcoin alongside gold and then chose gold. He has also tied his recent Mad Money picks to rising interest rates. Cramer’s comments were opinion, not investment advice.