GOLD TO RISE TO $2,000 AMID MASSIVE INFLATION
Bloomberg reported, "Gold may rise to a record $2,000/oz in the next three years as investors hedge against massive inflation sparked by governments printing money, according to Superfund Financial."
The metals are mixed this morning with gold up $2 and silver down $.10. The dollar is up 6 basis points, oil is down $.65 and the Dow Industrials are down 17 points. Gold erased overnight losses and moved back into positive territory as participants covered short positions to take some profits. Dow Jones Wire Service said, "An arrested rise in the U.S. dollar Wednesday is supporting gold ." The strength in gold this morning is impressive, particularly given the fact that the euro was lower against the dollar. A firmer dollar creates negative pressure on the metals market.
Many analysts have said that gold is moving substantially higher this year. However, because the market has gotten a little ahead of itself and has been a bit overbought, they believe this correction was needed and that the market could potentially get as low as $1,020 an ounce. However, Barclay's has indicated that it is a "buyer" down to $1,035, with the expectation that gold will rally to a new record high above $1,100 before the month of November is over. One London-based trader said gold has excellent support at $1,030.
Looking at the big picture I was impressed with a report from the Chart Store indicating that the current breakout above a triangle formation, (which occurred when gold burst solidly above $1,000 an ounce) is similar to previous triangle formation breakouts. Based upon those previous breakouts, they said investors might anticipate a move up to $1,456 or even $1,631. The Chief Strategist for BofA/Merrill, Francisco Blanch said he still sees gold moving up above $1,500 an ounce in a three-year three-stage move. This move began approximately a year ago. Therefore, the next two years should be quite promising based on Blanch's observations. Credit Suisse, in their latest report said they are overweight gold as they expect gold will continue to rise.
These are highly respected analysts from major firms. If we assume that they have a good chance of being correct, then gold should be accumulated at these levels on the dip. That has been Barclay's recommendation and it appears to be quite sensible. Another trader told Dow Jones Wire Service at an international bank in Singapore said, "I regard this as a healthy correction, we are still on the bull track, I think."
To get yourself on the bull track in a rising trend market like gold, you should get started without delay.& Use the correction as your bargain-buying opportunity. Call Goldline at 1-877-341-2646 to acquire gold or silver on this corrective move. Ask Goldline about their Price Guarantee Program. If Barclay's is correct, the month of November will be positive for the gold market. Therefore, if you utilize the PGP program you will have a two-week window of opportunity to re-price your transaction in the event the market should move lower. This is not available to all investors, but you should ask Goldline to explain the program to you and to assist you in utilizing it. You should also ask for the free information package, which contains quotes and articles citing a number of the major market analysts I quote on a regular basis. If you ask for it, you can have a free copy of the 2009 GFMS Gold Survey Update. That book sells for $450. 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 at 1-877-341-2646 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.
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- S&P Capital IQ - Gold: $1,900 (in 2012) "Leo Larkin, metals and mining analyst at S&P Capital IQ, thinks that $1,900 gold might not be that much of a stretch [in 2012]. 'Gold has been ..."
- Citigroup - Gold: $2,300 - $2,400 (by end of 2012) "While we remain cautious on Gold in the near term...we continue to believe that the bull market remains intact...we believe that 2012 may be..."
- Leeb Capital Management - Gold: $2,500 - $3,000 (in 2012) "I'll give you my target for gold at the end of 2012, it's going to be trading somewhere between $2,500 and $3,000. This..."
- Global Hunter Securities - Gold: $1,800 (in 2012) "'What I am looking for is a gold price of $1,800 an ounce in 2012,' says Jeffrey Wright, senior research analyst at Global Hunter..."
- US Global Investors - Gold: $3,600 (by 2017) "'People get so caught up with the next three minutes for gold and they should really be focused on the next three years,' says Frank Holmes, ..."
- Goldman Sachs - Gold: over $1,900 (in 2012) "Wall Street investment bank Goldman Sachs predicts that gold's bull run will continue into 2012 with a low interest rate environment and..."
- CNBC - Gold: $2,400 (no period given) "Gold will top $2,400 an ounce. The long-term bull market in gold marches on. Gold won't make a straight shot to a new inflation-adjusted high. As long..."
- Nomura - Gold: $2,000 (by end of 2012) "Nomura has raised its forecast for gold prices to $2,000 an ounce by the end of 2012, from $1,800 earlier. The brokerage said the low-interest rate..."
- Morgan Stanley - Gold: $2,200 (in first half of 2012) "Gold will lead a rally in commodities in 2012 as Europe's sovereign-debt crisis continues to roil financial markets, spurring demand for ..."
- UBS - Gold: $2,050 average in 2012 "[Gold] remains one of the top commodity picks for 2012 as 'most of the factors that pushed gold higher in 2011 are not going away,' according to UBS..."
- Bank of America Merrill Lynch - Gold: $2,150 - $2,200 (average in 2012) "From a technical perspective we believe that the bull trend for gold remains intact… with gold having not yet met any of..."
- TheStreet.com - Gold: $2,500 (by May 2013) "I want to own gold here. I think gold is going to $2,500 eighteen months from now... Gold has been up for ten straight years and this going to be the..."
