GOLD UP ON SAFE HAVEN DEMAND

by Joe Battaglia | April 06, 2010

Gold is up $2, having recovered from the previous overnight dip and moved nicely into positive territory in spite of the fact that the dollar is up 46 basis points. A $2 gain in gold with the dollar up that much is I think impressive. Oil is also up $.20. Silver, platinum and palladium are all lower.

There is a renewed concern about the sovereign debt of Greece and the kind of bailout that will be provided by the IMF and Euro Zone. There is a great deal of uncertainty there still. The problems have not been resolved and Greece still has to pay high interest rates to refinance its debt.

One of the reasons gold is so impressive today is that there was a flood of money that went into the dollar, as is obvious from the level of the dollar index. The stronger dollar often takes away the need for investors to buy gold as a hedge against greenback weakness, or as a safe haven. Nevertheless, gold is emerging as a major reserve currency and certainly has proven its safe haven attributes. The demand for physical gold is also on the rise. While silver is down $.09, it nevertheless is holding above $18 on the key contract, suggesting that it has good support at that level and may very well extend the gains further. Yesterday, a technical analyst was commenting that a decisive break above $18 should carry to $19 and from there to the previous December high at around $19.46. Gold also is demonstrating technical strength, holding above $1,131.50 on the key nearby contract.

On balance the performance of the market is excellent. Gold is now in the seasonally strong period of April/May and there is a good prospect for it to continue higher. A number of analysts think that in this time period gold will extend its gains into the $1,150 to $1,200 range.

Given the excellent opportunity that gold presents with Goldman Sachs forecasting $1,390 in the next 12 months and Merrill Lynch forecasting $1,500, one would think that gold is an excellent opportunity at these levels. If you would like to get started in gold or silver or add to your holdings if appropriate, call Goldline at 1-877-341-2646. You might wish to ask them about their Price Guarantee Program, which provides some comfort to those coming into the market. In addition, you should ask for the free information package, which contains excellent information including forecasts by major banks and brokerage firms. Call Goldline now at 1-877-341-2646. Be sure that you read the article that discusses the largest bank in China making plans to offer gold to its 200 million clients on a daily accumulation basis. If this program goes forward as expected, it could result in an enormous increase in the demand for gold. Call Goldline now to get the free information at 1-877-341-2646.

If you would like to take advantage of the Price Guarantee Program, which provides you with a 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.

To receive free information package on gold and precious metals investing, call Goldline at 1-877-376-2643.

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