GOLD - MOST FAVORED ASSET IN 2009
Gold and silver started the day lower and equities started higher, but that soon reversed with gold gaining $7 in early trading, silver coming back to unchanged and the Dow Industrials falling 140 points. So much for the speeches by Obama and Bernanke. Analyst Tom Kendal of Mitsubishi Corp., said he sees gold consolidating near current levels before staging another attempt at $1,000. A number of analysts are continuing to forecast gold will push above $1,000. Merrill Lynch says their longer-term outlook for gold is between $1,500 and $1,600 an ounce.
Moreover, the fact that gold seems to have now held support in the $970 to $975 zone is significant. If gold closes on the nearby futures market above $975, it will be considered a solid support level. Standard Bank analyst Walter DeWet said to the Dow Jones Wire Service, "Gold prices will recover in coming days." Technical analysis by Dow Jones Wire Service indicates that gold's weekly trend remains bullish. Given the forecasts of these analysts and the opinions that gold is headed to dramatically higher levels and the dollar dramatically lower it makes sense to acquire gold during this period of correction and consolidation.
Looking at the economic data, Fed Chairman Bernanke has told us we should expect the economic crisis to continue through this year at least and perhaps not see a full recovery for several years and it assumes that the government is successful in stabilizing the financial system. That would be consistent with some of the economic data emerging today. January median existing home prices fell 14.8% on the year to $170,300. The U.S. inventory of unsold homes is at a 9.6-month supply. If the banking system isn't going to find support until the housing market stabilizes, we may have some distance to go.
The World Gold Council reported to the Dow Jones Wire Service that, "Gold is the most favored investment asset in 2009 among investment advisors, according to an independent survey commissioned by the World Gold Council." Dow reported, "About 60% of investment advisors expect investors will be most risk averse in 2009 than last year, making gold an attractive asset to hold, the study found." All of this information is very bullish for the precious metal markets in general and gold in particular. That is why we see so many individual investors moving into gold for safety and protection of purchasing power. Moreover, many are looking at gold as simply an investment asset with excellent potential on the upside.
Regardless of your view of the market, it makes sense to have a proper diversification into gold and silver assets. To do so, call Goldline at 1-877-341-2646 and ask them to assist you in getting started with gold and silver assets that meet your needs. You may also wish to ask about the special that may allow you to receive either free shipping or take advantage of Goldline's Price Guarantee Program. The free information package has excellent information in it for all investors. It includes a free copy of the CD interview with Frank Barbera and a free copy of the Advisor Newsletter. You may also wish to ask how you can get a free one-year subscription to the Advisor Newsletter. 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 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, 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 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 1-877-341-2646 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..."
