GOLD REACHES $1,150 TARGET

by Joe Battaglia | November 18, 2009

Gold is being carried upward on its own momentum. Traders and investors are buying gold simply because it is rising and performing better than any other market. This morning gold reached a high of $1,153.40 an ounce on the key contract, and silver reached $18.86 an ounce. These moves are indicative of a very powerful bull market that is likely to carry substantially higher. Earlierin the week I commented that Barclay's Capital had forecast that gold would be $1,150 soon and that it would reach $1,200 by year-end. They continue to hold that forecast. Obviously, the $1,150 target has been reached. Gold is well supported by a weaker dollar, down 36 basis points to 75.01 on the index. Earlier the dollar dipped as low as 74.90, which is the first time its broke 75 in over a year. If the dollar falls back to the 70 to 72 level where it has been before, analysts think it will propel gold substantially above $1,200 an ounce. Oil is also up $.44 at $79.58 a barrel and the equity market is down with the Dow down 67 points.

Dow Jones Wire Service said that there are also signs of good demand for physical gold. Walter DeWet of Standard Bank said, "We believe buying momentum will remain positive for most of the 4th quarter on high seasonal demand." As a result, DeWet said he believes "the current gold rally still has some legs irrespective of high investment demand." Barclay's Capital analyst told the Dow Jones Wire Service that investors are flocking to gold as they flee the dollar and put money into hard assets equities and higher yielding currencies. Some are also concerned about currency debasement stemming from government debt. Some also see inflation emerging longer-term as a result of accommodative government monetary policies and are buying the metal as a hedge against rising prices. The Consumer Price index rose 0.3%, which was slightly more than had been expected. That too is supportive of gold.

This morning CNBC interviewed the President of the World Gold Council who rang the opening bell on the floor of the Exchange. They had $1 million worth of gold bars on the floor of the Exchange and everyone flocked around the gold. The analyst from CNBC had a productive interview with the President of the World Gold Council and he pointed out that gold has excellent upside potential from these levels. He said that many are acquiring gold as a method of diversification of their equity portfolios. He confirmed that there are many reasons to own gold, particularly its negative correlation with equities. The fact that CNBC promoted the interview, showed the gold, and had a lengthy interview is all indicative of a change in sentiment in the financial community. Gold is no longer being viewed as an outlier. It is now being considered a mainstream method of diversifying portfolios and protecting against currency debasement and rising inflation expectations.

Investors who have not acquired gold should be moving into the market without delay. The upside potential is excellent. BofA/Merrill Lynch, Barclay's Capital and many others forecasting gold will rise to $1,500 an ounce over the coming year or two. That means there is excellent potential in the market from these levels and those who have yet to get into the market should do so for the profit potential that it offers, as well as for protection of purchasing power and protection against inflation that gold provides. Call Goldline at 1-877-341-2646 for assistance in getting started. You may also wish to ask for the free gold investor information package. It contains a free DVD, a newsletter and many other articles that will be of assistance to you in arriving at a decision as to whether you wish to own or add to your gold holdings. Call Goldline now at 1-877-341-2646.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver products 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 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 decision. Call Goldline at 1-877-341-2646 now to receive your free gold investors 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.

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