GOLD - AN EXCELLENT DIVERSIFIER
On this first day of the New Year, gold is trading down $7.80 and silver is down $.05. Both are performing as one might expect given the fact that gold was up $14 on Wednesday, and up another $4 in the aftermarket for a gain of $18. The U.S. Dollar Index is down 8 basis points at 81.55 and oil is down $.45 at $44.15. Oil has bounced considerably off it's low of $41.05.
Analysts are saying gold has excellent support at $865 an ounce. Holding above that level would be considered bullish for the gold market. Since gold is trading substantially above this level after having tested it overnight, I suspect we will see gold continuing to rally into the first quarter of this year. Be mindful that trading remains thin in all of these markets, as many people have taken the day off. However, the markets are open and Goldline is open for trading all day.
The Institute for Supply Management Index for prices paid is the lowest since June of 1949. That is an indicator of major deflation. Moreover, the New Orders Index hit a record low and the Manufacturing Index was the weakest since 1980. In that kind of an environment we can expect the Fed and other central banks to continue to be aggressively inflating the money supply in an effort to pump up the economy. Conditions in the economy continue to go from bad to worse and that will force extraordinary actions on the part of not just the Fed, but also the Treasury.
Standard Charter Bank told Dow Jones Wire Service this morning that they expect gold to retest $1,000 an ounce by the end of the second quarter. Others believe we will be above $1,000 in the first quarter. Michael Gross, Broker and Futures Analyst with Option Seller said he sees gold at $1,025. With so many analysts thinking that gold will outperform other markets for this year as they have done over the past eight years, I think gold presents an excellent diversifier for individuals portfolios and it provides protection and insurance for all investors. Last year, gold recorded an all-time record high average price. It also recorded the highest spike price. This year is likely to prove better.
Call Goldline today for assistance getting started with your gold investments. You may wish to ask them about the special free shipping offer, as well as asking for the free information package. You will find that the free information package is very helpful in assisting you to learn more about the precious metals markets, the likely performance of gold according to gold prominent analysts, and factors that concern the value and purchasing power of your money. One of the articles in the free information package is from Forbes.com where they are forecasting that the government may be forced to formally devalue the dollar. Another article from Merrill Lynch says that the U.S. dollar may cease to be the world's reserve currency. Information from Citibank suggests that gold could actually reach above $2,000 an ounce this year. To receive all of this free information and more, call Goldline at 1-877-341-2646.
Investors should contact Goldline and ask them to explain the features, benefits and cost structure of the various gold and silver investments that are available. 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, 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 Swiss 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 an investment. Call Goldline at 1-877-341-2646now 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..."
