BARCLAY'S CAPITAL TAPS GOLD TO RISE TO $1,500

by Joe Battaglia | November 17, 2009

The dollar is up 48 basis points this morning at 75.31 as President Obama is talking with the Chinese about allowing their currency to float, thereby strengthening the yuan against the dollar. There is some profit-taking this morning, however the correction is modest with gold down $4.70 in early trading. Silver is down $.11. After yesterday's enormous up move, those corrections are miniscule. Oil is also slightly lower along with the Dow. With the dollar rallying so much, a little profit-taking was to be expected. Perhaps the biggest surprise is that gold did not correct very much given the strength of the dollar rebound.

Dow Jones Wire Service stated, "Although gold is lower, it still remains well above $1,100 an ounce, with the current most active futures contract up 27% on the year. Over that time, the U.S. dollar has slipped more than 7% against a basket of currencies, boosting gold as a dollar hedge while investors flee the greenback for hard assets, equities and higher yielding currencies." They further stated, "Some participants also remain concerned about inflation emerging on the back of accommodative central bank monetary policy and government stimulus measures to stem the economic crisis." They also stated that central bank purchases have also been supporting gold. "Late Monday, the International Monetary Fund said it has sold two metric tons of gold to Mauritius." They further stated that Sri Lanka has also been buying the metal.

Clearly, it appears that the demand for gold outstrips the available supply and that is bullish for gold. Dow Jones Wire Service also reported, "The gold cash market is showing evidence of a very strong bull market, and having completed two long-term continuation patterns, there is scope for further gains toward projected targets at $1,229.60, $1,317.81 and $1,323.50." This is according to their Chief Technical Analyst Francis Bray.

Given those targets from the Staff Analyst for the Dow Jones Wire Service, it would seem reasonable to assume that gold has tremendous upside potential from these levels. That opinion would be confirmed by observations from VTB Capital analyst Andrey Kryuchenkov who said, "$1,200 per ounce could well become a self fulfilling prophecy as the speck frenzy continues." Barclay's Capital told Dow Jones Wire Service that in the medium-term gold should target $1,500 an ounce, with a near-term target of $1,150 later this month. BofA/Merrill Lynch is also targeting above $1,500. Therefore, these are reasonable targets for investors to anticipate.

To take advantage of these forecasts by prominent analysts, call Goldline at 1-877-341-2646. Ask them to assist you in acquiring gold and silver assets for your own holdings. In addition, be sure to ask them for the free information package, which contains several articles that express the views of many of these analysts, along with the company brochure, a free DVD and other information that you will find very helpful. Call Goldline now at 1-877-341-2646.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver products that are available. Select those that best meet your own personal and individual investing needs and objectives. Investors looking for low transaction costs may wish to consider bullion assets such as American Eagles, Swiss 20 Francs, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these 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 decision. Call Goldline at 1-877-341-2646 now to receive your free gold investors 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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