METALS BACK FROM YESTERDAY'S DIP

by Joe Battaglia | July 09, 2009

The metals started out on a positive note, rebounding from yesterday’s dip. Gold has hung on to a $2.50 gain, while silver gave up the early gains and is now down $.03.The metals started out on a positive note, rebounding from yesterday's dip. Gold has hung on to a $2.50 gain, while silver gave up the early gains and is now down $.03. The dollar is down 61 basis points at 80.16 and oil is up $.12 at $60.27 a barrel.

In the economic news, the number of newly laid-off workers filing initial claims for jobless benefits last week fell to the lowest level since early January. This was largely due to changes in the timing of auto industry layoffs. Continuing claims, however, unexpectedly jumped to a new record high. The unemployment rate is 9.5% and is expected to top 10% by the end of this year. New claims for unemployment were 565,000 while continuing claims jumped 159,000 to 6.88 million, the highest on record dating from 1967.

Many of the most prominent analysts such as Barclay's Capital, CommerzBank and others, who are very bullish on gold and think it will reach $1,100 or $1,200 by the end of the year, also are of the view that it may test lower before moving to new record highs, with a potential to challenge $882 to $885. However, if it can begin to sustain some rebound, which it is doing today, and if the dollar remains weak against the euro, we will see the market bottom ahead of that. I think that some of these analysts may be a little over-conservative at this point. MKS analysts say if gold dips towards the $900 level, buyers will come in. Clearly, if $900 is supported, I think you will see a considerable amount of buying coming into the market. There are a lot of buyers on the sidelines waiting for some indication of a bottom to jump into this market.

None of us can really forecast bottoms or tops with any significant degree of accuracy. That's why we use dollar cost averaging strategies. That would be an excellent choice today. If you are thinking of making a gold purchase, time it so that you make part of your portfolio at this level and do some scale down buying if that should occur and scale up buying if that should occur. This would give you a better overall average price on your transaction.

In the alternative, you may wish to utilize Goldline's Price Guarantee Program. This program is unique to Goldline and it provides you with a two-week window of opportunity to re-price your transaction in the event of a correction. In my view, whatever corrective process is going to occur will be completed before the end of August. I think by September, the gold market will be rallying aggressively. This is due to seasonal factors and also due to developments that are likely to affect the dollar as we move into the autumn months. I think it is important for all investors to own some gold to diversify their holdings and to provide purchasing power protection. There is absolutely no doubt in my mind that the dollar will lose its reserve currency status over the next several years. I also believe over that timeframe the economy will begin to recover and inflation will take off much more aggressively than it did during the 1970's.

In addition, I believe there is a significant potential for formal devaluation of the U.S. dollar that will be crushing for investors who do not own any gold. That is why you should call Goldline at once to get started with gold and utilize this corrective process to your advantage. Call Goldline at 1-877-341-2646 for assistance in getting started and be sure you ask about their Price Guarantee Program.

If you do not understand these various concepts or you would like to have more information, feel free to contact Goldline today for their free information package. You can also have a choice of a free CD or DVD. Call Goldline at 1-877-341-2646 now to receive the free information.

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 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 a purchase. 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.

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