GOLD RALLIES AS DEBT WOES DOMINATE

by Goldline.com | November 22, 2011

Gold prices rallied on the New York Spot Market after buyers in China took advantage of lower prices and global debt worries spurred safe-haven demand. Analysts say gold will remain supported on demand for the metal as a preservation of wealth. “We expect inflows into both gold bars and coins and ETFs to continue as Europe and the U.S. are still not free from the sovereign-debt issues,” Samsung Securities Co. analysts led by Simon Francis wrote in a note today. “The global economic growth outlook continues to deteriorate and U.S. interest rates should remain low for longer.” (Bloomberg, 11/22/11)

Stocks are extending losses today as investors digest the failure of the U.S. super committee and lackluster readings on U.S. economic growth. Also souring investor sentiment are rising bond yields in Italy, Spain, and France as the Eurozone debt crisis continues to escalate. According to CNN Money, “There was some relief Tuesday after the major ratings agencies reaffirmed the U.S. credit rating, but the collapse of budget talks could have longer-term ramifications, said Sebastian Galy, a senior currency strategist at Societe Generale, in a research note.” (CNN Money, 11/22/11)

The New York Times reports gold has become the insurance policy of choice for many sophisticated investors in the wake of escalating economic uncertainty. The article quotes Byron Wien, an investment strategist as saying the record highs in gold prices this year are a reflection of governments printing money and debasing their currencies, thus increasing demand for gold as a preservation of wealth. “The money supply will be expanded in the major currencies in the developed world, and investors will seek the protection of hard assets: something real, and gold is perceived as real,” said Wien. (New York Times, 11/22/11)

†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.

Get Your FREE Investor Kit!
Learn how to acquire Gold and Silver
Complete the form below to receive your FREE kit:
Title:
First Name:
Last Name:
Phone:
Zip:
Please check this box to sign this form and confirm that Goldline may send its free investor kit to you and contact you using the phone number above.
Address:
 
City:
Country:
State:
Zip:
Please check this box to sign this form and confirm that Goldline may contact you using the email address above and send its free investor kit to you for free.
Your Investor Kit will include
  • An Introduction to Precious Metals
  • Advantages of Owning Gold and Silver
  • Popular Coins and Gold Products
  • How to Acquire Precious Metals and Rare Coins