GOLD’S 4% RALLY SPURS PROFIT-TAKING, EUROPE IN FOCUS

by Goldline.com | December 05, 2011

Gold prices are lower on the New York Spot Market as of 8:12 a.m. PST on profit-taking as investors took advantage of last week’s 4% rally in gold. According to The Street, “There are many reports swirling about major financial initiatives to help stabilize Europe. European central banks, through the European Central Bank, could lend up to 200 billion euros to the International Monetary Fund, which could then lend that money back to weaker European governments. The Federal Reserve could also be prepping to lend more money to the International Monetary Fund along with the ECB.”

After cutting rates by 0.25% at its last meeting, the ECB is widely expected to issue another rate cut when it convenes on Thursday. "Our economists anticipate a rate cut of 25 basis points to 1%," says CommerzBank. "This should lend support to the gold price since the opportunity costs of holding gold will remain low." (The Street, 12/05/11)

Optimism over progress in stemming the European debt crisis is driving U.S. stocks higher, lead by bank stocks at the start of a pivotal week for Europe. Eurozone leaders meet this week for another summit to talk about rewriting European Union treaties. "This week will likely see either an agreement to bind Eurozone nations' fiscal policies together with irrevocable, enforceable institutions or the beginning of the end for the single currency," said Brian Dolan, chief currency strategist at Forex.com. According to CNN Money, “French President Nicolas Sarkozy and German Chancellor Angela Merkel met Monday morning in Paris and agreed on a new pact they say will enforce fiscal discipline in the Eurozone and prevent another debt crisis in the future.” (CNN Money, 12/05/11)

†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.

Get Your FREE Investor Kit!
Learn how to acquire Gold and Silver
Complete the form below to receive your FREE kit:
Title:
First Name:
Last Name:
Phone:
Zip:
Please check this box to sign this form and confirm that Goldline may send its free investor kit to you and contact you using the phone number above.
Address:
 
City:
Country:
State:
Zip:
Please check this box to sign this form and confirm that Goldline may contact you using the email address above and send its free investor kit to you for free.
Your Investor Kit will include
  • An Introduction to Precious Metals
  • Advantages of Owning Gold and Silver
  • Popular Coins and Gold Products
  • How to Acquire Precious Metals and Rare Coins