GOLD RISES TO SEVEN-WEEK HIGH

by Goldline.com | August 19, 2010

Gold is at a seven-week high on the New York Spot Market as of 11:00 a.m. EST, climbing past $1,230 an ounce Thursday as investors bought gold after more signs of a weak labor market. Investors are also anticipating further gains in the price of gold as we enter the month of September. In the fall, festival and wedding seasons in Asia jumpstart customer demand. Frank Holmes, CEO of U.S. Global Investors, said in a recent note that the "September price rises 2.5% above the August price," which would take prices up to their intraday high of $1,264 an ounce. (The Street, 8/19/10)

Stocks are down on the New York Stock Exchange after two days of gains, which were driven by solid earnings outlooks from retail giants Wal-Mart, Home Depot and Target. Stocks began to retreat Thursday after a weekly government report showed a surprise surge in jobless claims to the highest level since November. The number of Americans filing for unemployment insurance unexpectedly jumped 12,000 to 500,000 last week from an upwardly revised 488,000 the previous week. The figure was the highest level since the week ended Nov. 14. (CNN Money, 8/19/10)

Gold prices will continue to climb on investor demand for the metal as a safe-haven asset according to Caesar Bryan, who manages $609 million in the GAMCO Gold Fund Inc. Gold “is in a multiyear bull market,” he said in a Bloomberg Television interview in New York. Prices are going to go up.” Agreeing with Bryan, Lee Suk Jin, a commodities analyst with Seoul-based Tong Yang Securities Inc., wrote in a report today, “In the short term, gold may continue to be propped up by demand from investors trying to avoid risky assets due to uncertainties in the markets.” (Bloomberg, 8/19/10)

† 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 Goldline's Account and Storage Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline's spread, which is the difference between the price we sell our products and the price we buy them back, generally ranges between 5% to 20% on our most common bullion products and 30% to 35% on all other products including our popular European francs, proof coins, silver dollars and half-dollars, and graded coins. 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 1-877-341-2646.
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