GOLD REACHES NEW ALL TIME RECORD HIGHS

by Joe Battaglia | October 06, 2009

The Independent Newspaper out of London reported today that the OPEC oil producers are planning to accept currencies other than the dollar and gold for their oil. They also said that Russia, China and others were looking at abandoning the dollar as the principal pricing mechanism for oil. That has since been denied, but it focused attention on the dollar's reserve currency status and is very positive for gold, said Dow Jones Wire Service. They also said that any further such rhetoric about abandoning the dollar would keep underpinning gold.

This caused gold to shoot up to new all time record highs. That movement in the gold market triggered buy stops and Dow Jones Wire Service reported that funds are among the buyers, according the George Gero, Vice President of RBC Capital. Gold posted a record high of $1,038 on the December contract and is still trading very close to that level. Silver reached a high of $17.26 and is still trading very close to that, up $.69. The dollar is down 21 basis points at 76.43 and oil is up $.85 at $71.26 a barrel. Other commodities are likewise higher. The Dow Industrials are also moving higher, up 110 points as it is widely expected that a weaker dollar and beggar-thy-neighbor currency policies will be the juice to fuel the export market and perhaps help improve the U.S. economy. However, we must also be aware that it is the kind of situation going on at the moment that is destructive of the wealth and savings of the middle class. As the dollar falls, it is destroying buying power. This is one of the key reasons why so much money is moving into the gold market.

I have been talking about this for years. All of the things that I have been forecasting for you are now occurring. I was surprised to hear analysts on CNBC saying this morning that the dollar's status as the world's reserve currency is coming into serious question. Many were discussing the potential for a very aggressive decline in the dollar. They also said that at the G20 meeting the participants were very concerned about the reserve status of the dollar and enormous deficits that are being built up by the U.S. government.

Many analysts have forecast that once gold pushes above $1,033 on a close, that it will quickly move to $1,100 an ounce. Some analysts including Fortis Bank and others have been forecasting that gold could reach a high of $1,200 or more this year. This is the kind of development that could cause gold to move to $1,100 quickly and then on to $1,200 or perhaps higher in the near-term. Just in the last few days, Bank of America/Merrill Lynch said they see gold moving to $1,500 over the next couple of years. Other major analysts are offering similar views. In fact, Bank of America/Merrill Lynch said on Monday, that they recommend gold and other assets as part of a defensive posture. Those recommendations tie in closely with a falling dollar.

On October 1st, Dow Jones reported a headline that said, "Gold Heading For $1,100 - $1,200 By Year-End." Deutche Bank sees gold above $1,100 in the coming year. I have said that is probably a conservative forecast. Another analyst from the Gold Report said, peak gold and a weak dollar means $2,000 plus. Jim Sinclair is forecasting gold at $5,000. Whether these lofty levels are reached remains to be seen. However, it is clear that the path for gold is higher and that investors who have been accumulating gold are doing quite well.

Those who would like to take advantage of the opportunities that are presented by gold should contact Goldline at 1-877-341-2646 and ask for the gold investing package. Also ask for a free copy of the Grandich CD or the Gold 2009 Update book, a $450 value that you can receive for free. Call Goldline at 1-877-341-2646.

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 purchase. Call Goldline at1-877-341-2646 now to receive your free gold 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.

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