END OF YEAR CONSOLIDATION BRINGS BUYING OPPORTUNITY

by Joe Battaglia | December 30, 2009

A stronger dollar, up 24 basis points, caused the metals to pull back this morning, with equities also falling back in early trading. Gold extended its loss, dipping $9 in early trading as gold continues to experience end of year profit-taking. Thin trading conditions mean an increasingly volatile market, creating what is an obvious buying opportunity. The correction at the end of the year is not unusual as very often people who scored big profits want to cash those profits and book them by year-end to secure bonuses and to register performance. This is referred to as book squaring ahead of the holiday weekend. I added to my gold holdings yesterday.

One analyst told the Dow Jones Wire Service that it's all about the dollar. Those who have shorted the dollar are forced to cover and those that have been long gold want to utilize their profits. The combination results in the kind of activity we see today. Another analyst said, "Gold remains under pressure due to traders unwillingness to enter the market in a meaningful way prior to year-end. End of year book squaring and the recent strength of the dollar have also lead to gold's fall back below the $1,100 an ounce mark." However, be mindful that most of the analysts and traders who are squaring positions today anticipate being aggressive buyers after the New Year. Moreover, the market is accustomed to gold trading at these levels; therefore the downside appears rather limited according to many of the analysts. A large number of markets overseas are already closed for the New Year holiday. Therefore, traders who might ordinarily be in the market have already closed their books for the year.

In economic news, the Chicago PMI report was much higher than had been previously expected. The index came in at 60 versus 56.1 in November and that was substantially above economists' expectations. This would indicate that the economy is beginning to grow. However there is still a lot of nervousness over the potential for deflation to resume after the New Year. In the view of many analysts, gold remains a buying opportunity at these levels.

To take advantage of that opportunity, call Goldline at 1-877-341-2646. You may wish to inquire about Goldline's Price Guarantee Program. That program has provided many with the opportunity to re-price their transaction to lower levels as the result of the correction. This has provided them a much better overall price on entry and has been extremely beneficial tool for many. Call Goldline today to learn more about the Price Guarantee Program. In addition, you may wish to ask for a free copy of the information package, which contains BofA/MerrillLynch's forecast for the coming year on oil, gold and other assets. You will also learn a great deal about some of the reasons why the dollar is expected to continue a declining trend and gold will resume its uptrend. Call Goldline at 1-877-341-2646 now for the free information package .

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 needs and objectives. Those 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, 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.

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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. You should review Goldline's Account and Storage Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline's spread, which is the difference between the price we sell our products and the price we buy them back, generally ranges between 5% to 20% on our most common bullion products and 30% to 35% on all other products including our popular European francs, proof coins, silver dollars and half-dollars, and graded coins. 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 1-877-341-2646.

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