GOLD AND SILVER RALLY IN SPITE OF A STRONGER DOLLAR
Gold is up $9 in early trading and silver has gained $.17. Both are rallying in spite of the stronger dollar, up 78 basis points at 89.36. Oil is down $1.10 at $44.27 a barrel and the Dow Industrials are down 98 points 6,777. Weakness in the equity market is bringing out safe haven demand for gold. It's too early to determine that the consolidation is complete. However, having held well above the $900 level, gold looks constructive at these levels and analysts think we are in an excellent buying zone.
Jim Cramer of CNBC has been repeatedly encouraging people to acquire gold and silver at these levels during this period of correction and consolidation. Merrill Lynch analyst Rosenburg continues to say that gold is a buy at these levels. Most of the analysts see gold making a substantial move to the upside over the next few years. Forecasts of $1,200 by the end of this year are fairly common. In fact, the editors of Barron's Magazine forecast in January that gold would see $1,200 this year. Some analysts think we might see gold higher than that. Regardless of the near-term forecasts, Merrill Lynch says that over the longer-term gold will achieve $1,500 to $1,600 an ounce. Citibank thinks $2,000 is a likely target.
Given the alternatives, gold continues to be a popular choice and it has been performing that way. Since 2001, gold has outperformed all other assets. It continues to do so this year. Moreover, gold is an asset that preserves and protects wealth. It is a hedge against inflation and deflation. These are all reasons why investors should have a proper diversification into gold. We are hearing the latest news that unemployment is skyrocketing. New claims for unemployment hit 639,000. This is a fearful statistic and again pushes investors into bargain buying in the precious metals area.
This is an opportunity for investors to call Goldline for assistance in getting started with a proper gold diversification for their portfolios. Since silver is very undervalued compared to gold, Jim Cramer has begun recommending it also. Goldline can assist you with your silver investing needs as well. Goldline also offers some specials whereby you can either have a choice of free shipping or the utilization of Goldline's Price Guarantee Program. That program provides you with a two-week window of opportunity to re-price your order to get more gold or silver for your money in the event the market should correct after you make your purchase. Call Goldline at 1-877-341-2646 now to learn more about these opportunities.
I also recommend that you ask for the free information package. Tell them that Joe said to call and they will give you a free copy of the Advisor Newsletter, a $99 a year subscription value, and a free CD interview with Frank Barbera. Frank is a very prominent analyst who discusses with you the stock market, the economy, the dollar, precious metals and a number of other factors you will find very helpful and informative. You will also receive absolutely free a number of articles from major economists and analysts that will assist you in arriving at opinions with regard to your investing decisions. Call Goldline now 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 and how you may be able to receive free coins.
To receive the free information package, including articles on the dollar, the economy and gold, call Goldline at 1-877-341-2646. Goldline also provides several other helpful articles. There are a number of other independent third-party source articles that you will find extremely helpful and informative. 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 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..."
