GOLD REACHES ANOTHER RECORD HIGH

by Joe Battaglia | October 08, 2009

Overnight, December gold reached a new record high of $1,059.60. It subsequently fell back on profit-taking and is currently trading at $1,046.50. Nevertheless, it is in positive territory and working on overcoming resistance at the $1,050 level. Silver reached a high of $17.93 and is currently trading up $.11 at $17.61. The dollar is down 36 basis points at 76.13 and oil is trading at about unchanged at $69.58 a barrel. Gold pulled back off of its highs after the dollar rebounded from a low of 75.89. Some analysts say $1,045 is now a key support level and failing to hold that would produce a correction. However, the market looks quite strong at these levels and it appears to be consolidating its recent gains. This is the third straight day of new record highs in Comex gold. Volume is good and the moving averages are higher. There is also huge demand for physical gold in one form or another, said the Dow Jones Wire Service.

The rebound in the dollar and the correction in gold occurred after a 33,000 decline in weekly U.S. jobless claims. That statistic offered some support for the dollar. The Dow Jones Wire Service also reports that there has been "a lot of fund buying." Larry Young of the Infinity Brokerage told the Dow Jones Wire Service, "Many participants are continuing to buy gold as a hedge against potential inflation. Some may turn to gold on a rate-of-return basis, should the next round of corporate earnings only be average. Many are also looking at the metal as a safe haven and as an asset allocation play." Young further said, "This is the last quarter of the year, so we see a lot of new money going to work, and gold is becoming a larger percentage of people's asset allocations for several reasons." He also pointed out that the first big wave of Baby Boomer retirees is occurring over the next five years and he believes they are looking for capital preservation. Gold serves that purpose well.

The Dow Jones Wire Service also stated, "Gold may correct, should commodity prices weaken and the U.S. dollar strengthen, but any drop is likely to be short-lived, as investment demand appears likely to remain firm, says HSBC analyst James Steele. The next target is likely to be an assault on the psychological $1,100 level." He also said there is a good argument against the notion that gold is over extended. Afshin Nabavi, head of the physical sales at MKS Finance said to the Dow Jones Wire Service, "I wouldn't be surprised to see $1,100 an ounce sooner rather than later." Nabavi added that by the end of the year he expects gold to trade up to between $1,200 and $1,300 an ounce.

Given all of these forecasts and the weakness of the dollar, it is responsible to consider diversifying your holdings with gold and silver assets. Gold's performance has been spectacular, the prospects are outstanding and the need to preserve wealth and purchasing power is certainly at hand. Call Goldline now to get started with gold at 1-877-341-2646. Also, be sure you ask for the free information package, which contains outstanding articles that you will find very helpful and informative, including information on the movement towards a new global reserve currency to replace the dollar. Call Goldline 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. 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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