Jim Cramer favors gold over Bitcoin for portfolio hedging

CNBC host Jim Cramer has expressed a preference for gold over Bitcoin as a primary tool for hedging portfolios against market volatility. During an episode of ‘Mad Money’, Cramer suggested that while both assets can theoretically be used to stabilize a portfolio mix, gold bars or the SPDR Gold Shares (GLD) ETF are more suitable options for protection.

While Cramer did not dismiss Bitcoin entirely, he warned against low-quality tokens and identified two specific cryptocurrencies as “vetted” exceptions. His advice came in response to an investor seeking to rebuild capital after using funds for a home down payment. Cramer recommended a strategy of distributing new capital across index funds and selected individual stocks, using gold as a stabilizer.

This discussion coincides with significant market activity, including a reported $7 billion inflow into gold and Bitcoin ETFs within a five-day period. The debate also touches on the relevance of the traditional 60/40 portfolio model in the current economic climate.