DOLLAR TANKS AGAIN
Gold continues to show strength up $2.00 this morning as the dollar as fallen back aggressively. Gold reached as high as $1,069.70 and silver reached a high of $18.08 (basis Dec.) in early trading. However, profit taking set in particularly after gold did not hold on to a breakout above the $106 resistance level. With the dollar down 202 basis points it is clearly in serious trouble at this point. The dollar is trading at $75.96 on the index. Oil up $.26 at $73.53 which is well off its high of $74.47. The equity market is lower with the Dow down 50 points. Gold rose to a new record high as the dollar remained on the defensive with technical buying triggered on the metal's rise. Nevertheless, it is normal and reasonable to have some profit-taking along the way. The gold market has had a series of consecutive up days with almost no corrective days. That is remarkable as corrections are normal. Silver after reaching its high and subsequent pull-back on profit-taking actually dipped in the negative territory down $.12 to $17.70.
Andrew Montano, director of precious metals at Scotia Mocatta Bank said, "It may not be until we see 1100" before a correction occurs. Gold could certainly make a move to $1100 without correcting, as other analysts quoted by Dow Jones wire service seem to share the same view. The impetus for the profit-taking occurred as the dollar rallied from its low of $75.74. However investors should be aware of the fact that the dollar has been very over sold. And is, therefore, entitled to some kind of "dead cat bounce."
We should only look back over the last 2 years when gold was trading at much lower levels we had the dollar as low as around 72 on the index. This would indicate that gold is much stronger now than it was a year ago. Dow Jones wire service said that they expect gold to trade to $1100 an ounce in the first quarter of 2010.
Several weeks ago when oil was trading at much lower levels I reported that Goldman Sachs was forecasting oil at $80 a barrel. Having reached above 74 it looks like that forecast is going to be spot on. In fact it could end up being low. One analyst, Charlie Aitken, said that the Chinese are buying spot gold. He said "The price action in gold, where every price dip sees buying support, suggests 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 reported that Aitken said that gold is poised to head to $1200 an ounce. Given forecasts of this magnitude from prominent analysts investors should consider owning gold at these levels. Call Goldline today for assistance in acquiring gold at 1-877-341-2646. It would also be helpful for investors to read the free information package. It contains excellent articles and information that will assist you in understanding the benefits of owning gold as a portion of your holdings. Call now for the free gold investor information at 1-877-341-2646. If you ask for a free copy of the GSMS 2009 gold update they will send it to you. This is a $450 book and you can get it for free simply by asking for it.
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.
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.
- 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..."
