DOLLAR CONTINUES TO DECLINE
Gold started the day lower experiencing a bit of a correction following the huge run up. Gold is currently trading down $3.00 with the December contract at $1062. If it can close above $1,061 it would be an extremely positive signal for the gold market as that level would now be support. Silver has continued to hold in positive territory, up a penny even though gold is a bit lower. Both of the metals were substantially higher earlier in the day. Gold reached a record high of $1072 and silver $18.18 on the futures markets. The dollar is down 44 basis points at $75.53 while oil is up $.89 at $75.07. The Dow Industrials are up 79 points at 9949 with many of the talking heads indicating that they think the Dow may reach 10,000 today.
Dow Jones wire service said "gold futures are back down from their overnight record extension as participants book profits and producers sell to lock in high prices. "Its profit-taking," said George Gero, Vice President with RBC Capital." This has been a powerful bull market and gold has run extensively to the upside. As the same is true for silver. A correction would be both normal and healthy for the market. Many investors will see this as a buying opportunity and acquire precious metals at these levels.
Yesterday I read a report on the air that said gold is well supported by demand from China. Southern Cross director Charlie Aitken said yesterday that the Chinese are buying spot gold on the dips. He stated, "The price action in gold, where every price dip sees buying support, suggests that someone is operating in the market soaking up gold. Our strategy is to be long everything China is short and from a portfolio perspective China is underweight gold as an asset class." Dow Jones wire service reported that Aitken said gold is poised to head to $1200 an ounce and that China needs to increase buying if it wishes to accumulate meaningful quantities of gold for reserves.
Given those constructive comments I'm sure that many investors will see this slight correction as a great buying opportunity. Call Goldline today at 1-877-341-2646 for information on getting started. You may wish to ask for the free gold investors package, which contains excellent articles and information on investing in gold and silver. Be sure to ask for a free copy of the GFMS Gold Survey Update. That book sells for $450. But you can receive a free copy simply by asking for it at 1-877-341-2646.
Gold's performance has been spectacular, the prospects are outstanding and the need to preserve wealth and purchasing power is certainly at hand. Call Goldline now to get started with gold at 1-877-341-2646. Also, be sure you ask for the free information package, which contains outstanding articles that you will find very helpful and informative, including information on the movement towards a new global reserve currency to replace the dollar. 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 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.
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†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.
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- S&P Capital IQ - Gold: $1,900 (in 2012) "Leo Larkin, metals and mining analyst at S&P Capital IQ, thinks that $1,900 gold might not be that much of a stretch [in 2012]. 'Gold has been ..."
- Citigroup - Gold: $2,300 - $2,400 (by end of 2012) "While we remain cautious on Gold in the near term...we continue to believe that the bull market remains intact...we believe that 2012 may be..."
- Leeb Capital Management - Gold: $2,500 - $3,000 (in 2012) "I'll give you my target for gold at the end of 2012, it's going to be trading somewhere between $2,500 and $3,000. This..."
- Global Hunter Securities - Gold: $1,800 (in 2012) "'What I am looking for is a gold price of $1,800 an ounce in 2012,' says Jeffrey Wright, senior research analyst at Global Hunter..."
- US Global Investors - Gold: $3,600 (by 2017) "'People get so caught up with the next three minutes for gold and they should really be focused on the next three years,' says Frank Holmes, ..."
- Goldman Sachs - Gold: over $1,900 (in 2012) "Wall Street investment bank Goldman Sachs predicts that gold's bull run will continue into 2012 with a low interest rate environment and..."
- CNBC - Gold: $2,400 (no period given) "Gold will top $2,400 an ounce. The long-term bull market in gold marches on. Gold won't make a straight shot to a new inflation-adjusted high. As long..."
- Nomura - Gold: $2,000 (by end of 2012) "Nomura has raised its forecast for gold prices to $2,000 an ounce by the end of 2012, from $1,800 earlier. The brokerage said the low-interest rate..."
- Morgan Stanley - Gold: $2,200 (in first half of 2012) "Gold will lead a rally in commodities in 2012 as Europe's sovereign-debt crisis continues to roil financial markets, spurring demand for ..."
- UBS - Gold: $2,050 average in 2012 "[Gold] remains one of the top commodity picks for 2012 as 'most of the factors that pushed gold higher in 2011 are not going away,' according to UBS..."
- Bank of America Merrill Lynch - Gold: $2,150 - $2,200 (average in 2012) "From a technical perspective we believe that the bull trend for gold remains intact… with gold having not yet met any of..."
- TheStreet.com - Gold: $2,500 (by May 2013) "I want to own gold here. I think gold is going to $2,500 eighteen months from now... Gold has been up for ten straight years and this going to be the..."
