ANALYSTS SEE $1,200 GOLD BY YEAR-END

Gold is down about $1 in early trading, while platinum and palladium are up. Silver is down $.18 in quiet dealings. Oil is also down $.85 and the equity market is slightly higher. Dow Jones Wire Service said gold traders are simply eyeing the movements in the dollar. The correction in the metals comes as the dollar rebounds from its lows. After a week where gold hit new record highs on an almost daily basis and after the substantial gains that we've seen over the past month, a correction is normal. Analysts however, have not changed their view that by year-end gold will likely trade at about $1,200 an ounce. Next year analysts look towards anywhere from $1,300 to $1,500 as reasonable targets.

A BofA/Merrill Lynch analyst said today that they maintain their $1,500 an ounce target. They sited the fact that emerging market central banks continue to turn to gold and away from G10 government paper to diversify their reserves. Clearly,there is a movement away from developed market currencies as reserve assets. This is being helped to some degree by the fact that China's currency is gradually becoming a reserve asset in its own right. In addition, the movement to replace the dollar as the sole reserve currency is gaining momentum. One analyst said to the Dow Wire Service, "Given the underlying bull strength in this market, room exists for further gains into record territory towards $1,150, and an equality move off the April 2009 bull pennant low at $865 highlights the $1,188.40 area",said Frances Bray, Dow Jones Chief Technical Analyst for Europe.

Given this strongmovement away from dollars by central banks and the expectation of higher inflation rates ahead due to the fiscal and monetary stimulus in the G10 countries, it is reasonable to assume that gold will make new record highs over the coming year. That is why many investors are adding gold to their holdings. This week we have seen reports that traditional stock mutual funds have been adding gold to their portfolios as a method to diversify and balance the portfolios. Others are doing the same,with hedge funds such as Paulsen's fund and Einhorn's Green Light Capital doing the same.

Given the fact that these folks are extremely successful investors, we should all be accumulating gold at these levels. Moreover, the fact that the government of India purchased 200 tons of gold at an average of $1,045 suggests that that is a floor under the price of gold reducing risk to today's investors. Barrick Gold also announcing that it is closing out the remaining 1.9 million ounces of its hedge book before September next year, adding further support to this market. It confirms their view that gold prices are headed dramatically higher.

If you would like to follow the lead of these very wise and successful investors, you should call Goldline at 1-877-341-2646 to get started. Ask them to provide you with the free information package on investing in gold, which you will find very helpful. Call Goldline at 1-877-341-2646 to receive the free information package or to acquire gold and silver assets.

If you would like to take advantage of the Price Guarantee Program, which provides you with a two-week window of opportunity in which to re-price your order in the event of a correction, you must select assets with some collectible value such as 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program.

To receive the free information package on gold investing, call Goldline at 1-877-341-2646. You will also receive the Client Account Agreement, a company brochure and a Coin Facts Risk Disclosure booklet. Read these carefully before you make a purchase. Call Goldline at 1-877-341-2646 now to receive your free gold information package.

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-877-376-2643.

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