GOLD ON BREAKOUT MOVE TO UPSIDE
Gold appears to be on a breakout move to the upside. It is trading up $10.10 at $966.50 an ounce on the nearby futures contract. Silver is also higher, gaining $.04 in early trading. It was higher, but eased back on some early profit-taking. The dollar is down 4 basis points at 78.72 and oil is down $.28 at $67.78 a barrel. As influences on the metals those two seem to cancel each other out. The equity market is lower, with the Dow down 7 points in early trading.
The latest economic data continues to point to rising inflation ahead. Gold is now beginning to enjoy additional demand from investors looking to protect purchasing power from the ravages of inflation. Moreover, technical buying is coming into the market as buy stops have been hit on the upside. As I have said repeatedly, September is generally an up month and the months of September through November tend to be the best months of the year on a historic basis.
On the economic front, U.S. factory orders rose 1.3%, which was better than June but less than expected. A good part of that came from production in the auto and defense industries. ADP reports that the month of August saw a loss of 298,000 private sector jobs. This is worse than the 213,000-drop predicted by economists. While there seems to be some signs of potential recovery in the economy, the fact is inflation seems to be on the rise while the economy shows even the most tepid signs of recovery.
Yesterdays Wall Street Journal featured a very important article entitled "Inevitable End To Dollars' Reserve Role?" This article indicates, as I have said many times, the dollar is in a declining phase that will ultimately lead to its replacement as the world's reserve currency. As that process develops the demand for dollars will be substantially reduced and that will ultimately result in a falling dollar, which translates into higher gold prices. Investors should not overlook these developments. We all own dollars. Everyone needs to have some measure of protection against a falling dollar.
To learn more about these developments call Goldline at 1-877-341-2646 for the free information package. There are several articles talking about the replacement of the U.S. dollar as the world's reserve currency and about formal dollar devaluation. The reasons and logic behind this are explained clearly in the free information package. In addition, as you see gold prices rising and now appearing to be on a breakout move that will carry gold to $1,033 this month according to Barclay's Bank, and dramatically higher ultimately to $1,325 an ounce according to Standard Chartered Bank. You should be acquiring precious metals or adding to your holdings without delay. Call Goldline for information on getting started with your gold investing needs at 1-877-341-2646.
Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver investments that are available to you. Select those that best meet your own personal and individual investing needs and objectives. Investors 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 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 an investment. 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..."
