GOLD AT $1,300 AN OUNCE “A STRONG POSSIBILITY”

by Goldline.com | July 07, 2010

Gold is near unchanged on the New York Spot Market as of 12:35 p.m. EST after reports overnight said investment demand for the metal has just recently begun to fade. News that Chinese monetary officials said China will not use gold as a "major channel" for investment of its massive currency reserves is also putting downside pressure on gold. A survey from the World Gold Council says gold prices will see buying support at $1,150 to $1,200 an ounce, with a move in prices to $1,300 an ounce “a strong possibility” later this year.

The Dow surged over 100 points on the New York Stock Exchange Wednesday as traders scooped-up financial, transportation, and technology shares and a stronger euro eased concerns about the European debt crisis. "It's a very uncertain, confusing environment for people right now," said Derek Hoffman, chief executive and founder of Wall St. Cheat Sheet. "The market has sold off recently on worries that the economy is shaky, and this week is likely to remain very choppy as we approach earnings season." (CNN Money, 7/7/10)

Gold may touch $1,500 an ounce within 18 months as investors seek protection against further quantitative easing and rising inflation, US-based investment fund Yorkville Advisors said on Tuesday. "The upside outweighs the downside," Brian Kinane, managing director at Yorkville told Reuters. "It provides a potential inflation hedge and inflation is coming in due course. "It gives you protection for flight to safety because it's the global currency that is not subject to quantitative easing," he said. "I believe gold can move to $1 500 within 18 months. Gold is well priced right now but there are people who have a view that it could go to over $2,000 an ounce," he added. "I would be of the view that gold has more room to run." (Business Report, 7/7/10)

† 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.
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