GOLD UNCHANGED - SILVER UP

by Joe Battaglia | May 27, 2009

Gold is trading near unchanged while silver is up $.06 in early trading. The dollar continues to weaken, down 16 basis points at 79.96. The dollar at these levels suggest a continuing bear market for the dollar, which may carry it as low as 70-72 on the index. Oil is firmer on the weaker dollar, trading up $.87 at $63.33 a barrel. The Dow Industrials are down 13 points, which is a recovery from the earlier opening lows. The softer dollar and higher energy prices are providing support for the gold market. However, there is significant resistance in the area of $960 to $975, which will be a key going forward.

The trading behavior of the market suggests that those levels will be taken out, and $1,000 will be tested once again. A break out above $1,035 and gold will be off to the races. For the moment, gold continues to consolidate the gains of last week. Trading is fairly light and we could see some technically-oriented buying if June gold gets back above $956. John Reade of UBS Bank said he thinks silver will outperform gold. Standard Bank targets gold at $1,250 this year.

April existing home sales rose 2.9% in April as buyers took advantage of foreclosures and snatched up property carrying discounted price tags. Foreclosure sales seem to be the key feature of the housing market. Forty-five percent of the 4.68 million April sales were foreclosures and short sales. The large number of distressed sales has driven prices lower with the median price for an existing home at $170,200, down 15.4% from April 08. Inventories of unsold homes remains very high and rose 8.8% at the end of April.

In the view of the Aden Sisters and other analysts, gold and silver are excellent buying opportunities at these levels. Investors should contact Goldline at 1-877-341-2646 for assistance getting started. Ask them about their Price Guarantee Program, which provides a two-week window of protection in the event of a correction. To receive the free information package, which contains excellent articles discussing the markets and the factors that drive the markets, including the potential for a new global currency, the potential for devaluation of the dollar, and other factors that are important to all investors, call Goldline at 1-877-341-2646. Be sure you ask for and listen to the new CD interview with Frank Barbera; it is very helpful and informative. Also ask for a free copy of the America Advisor Newsletters, a $25 value. Call Goldline now at 1-877-341-2646.

Investors should contact Goldline and ask them to explain the features, benefits and cost structure of the various gold and silver investments that are available. Select those that best meet your own personal and individual investing needs and objectives. Investors looking for low transaction costs may wish to consider bullion assets such as American Eagles, Swiss 20 Francs, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these assets.

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 an investment. 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.

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