BOFA/MERRILL LYNCH FORECASTS $1,500 GOLD

by Joe Battaglia | October 05, 2009

Gold and silver are both higher this morning in reaction to a weaker dollar. Although the dollar is only down 5 basis points, gold is looking quite constructive, as is silver. That is especially true given the fact that oil is down $.87 at $69.07 a barrel. The equity market is also higher with the Dow up 53 points and the Nasdaq up 15 points.

One analyst says that gold is waiting for a fresh catalyst to determine direction. However, some note that $1,000 has now become a fairly solid support level. Gold could be building a new base above $1,000 from which to launch another upside attack. Based on seasonalities, October and November are often good months for the precious metals, so there is certainly the potential for a test of overhead resistance.

BofA/Merrill Lynch said today that gold may rally to $1,500 an ounce by 2011 when oil prices rise back above $100 a barrel. Since that represents a 50% increase in a period of just two years, it would appear that gold is an excellent buying opportunity at these levels. Moreover, they said until 2011 gold will likely remain underpinned by currency weakness and may rise to as high at $1,150, said Francisco Blanch, their top commodity analyst as reported on Dow Jones Wire Service. Deutche Bank said they expect gold to rise above $1,100 an ounce within the coming year.

Based on these and other forecasts by major banks and brokers, gold appears to be an excellent buying opportunity at these levels. Investors who wish to acquire gold or to add to their holdings should call Goldline at 1-877-341-2646. If you would like to receive the free gold investing information, along with a free copy of the Gold 2009 Survey Update, which is a $450 book for free, call Goldline at 1-877-341-2646.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver investments 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 an investment. Call Goldline at 1-877-341-2646 now to receive your free gold investment 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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