GOLD CONTINUES UPWARD MARCH
Gold continues its upward march today, reaching a high of $1,095.20 before easing back to a $3 gain. Silver reached as high as $17.53 and is trading close to that, up $.08 at $17.48, all on the December contract. The metals are up in spite of the fact that the dollar rebounded, up 6 basis points and oil is down $.45. The Dow Industrials gaining 123 points, as the stock market was encouraged by the Fed's statement. Analysts are also saying that the Federal Reserve statement yesterday opened the door for gold to continue its upward march as they indicated they would continue their accommodative policy and keep interest rates near zero.
Dow Jones Wire Service said, "Comex gold up as technical momentum maintained." They quoted Steven Platt saying, "The market seems to be trending higher and seems to have the momentum in its favor, as long as we don't get any major movement to the upside in the dollar." They also reported, "December gold hit a peak of $1,098.50 an ounce in late Wednesday screen trading, a fresh record for Comex most active contract, after a statement from the Federal Open Market Committee indicated interest rates will remain at historically low levels for an extended time. Analysts at the time said this portended further dollar weakness and the longer interest rates remain low, the greater chance of eventual inflation down the road." They also pointed out that the expectation of longer-term inflation expectations and expectations for a weaker dollar are forcing a move into hard assets globally as a form of diversification and "gold is certainly one of the prime beneficiaries."
In a Dow Jones News Wire column by Al Lewis, Mr. Lewis said, "I wish I had an ounce of gold for every time somebody told me an ounce of gold was a dumb thing to buy. I wish I had listened to Pierre Lassonde. I first wrote about Lassonde in August 2003 when gold prices soared to a then unthinkable $375 an ounce. Lassonde told me he had 60% of his liquid assets invested in the precious metal and claimed it had no where to go but up. By up, he meant, $500, $1,000 and then maybe $6,500 an ounce. One thing I know for sure is that gold is going to have three zeros after the first number he said." Lewis also wrote that more recently Lassonde said, "Gold could even triple from here."
So where does Lassonde think gold will go from here? Lewis writes, "He believes it will settle when the Dow Jones Industrial Average and the price of gold are at a 1 to 1 ratio. It's currently trading at roughly 10 to 1 ratio. So how much will the Dow fall versus gold rise to meet this prophecy? That's the unanswered question Lassonde said." He further commented, "If China develops a mania for gold we will see prices we cannot even imagine."
If you believe that Mr. Lassonde, who has headed two of the largest gold mining companies in the world and the World Gold Council is someone who knows a great deal about the gold market, you may wish to be accumulating gold at these levels. If so, call Goldline at 1-877-341-2646 to get started. You might also want to ask for the free information package, which contains excellent information on gold forecasts, the dollar and other important items. Be sure to ask for the article from Forbes Magazine written by Congressman Ron Paul. He is warning of the potential for hyperinflation in our country. You should read that article carefully. Call Goldline now for the free information 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.
To receive the free information package on gold investing, 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 at1-877-341-2646 now to receive your free gold 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.
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- 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..."
