GOLD UP ON WEAKER DOLLAR

by Joe Battaglia | March 31, 2010

Gold rose sharply this morning, gaining $11 in early trading, while silver is up $.25. They are both reacting to a weaker dollar, down 43 basis points and rising oil, up $1. The equity market is lower with the Dow down 54 points. Gold has now hit its highest level since March 19th, which is a substantial improvement and a good indicator that gold will continue to head higher. The euro rose overnight after a soft ADP report on private sector U.S. employment. It had been expected that unemployment would begin to show some improvement. However, the report indicated a loss of 23,000 private sector jobs. Friday's report, which includes government sector jobs, may show some improvement due to the hiring of census workers.

It was reported today that the IMF has been selling small but steady amounts of gold in London at the PM fix. They are estimated to be selling about 40,000 ounces of gold a day or 1.24 tons. These sales apparently are transparent and showing excellent liquidity. It certainly hasn't been influencing or affecting the market. As we see on this announcement, gold is up dramatically.

In another interesting development, the World Gold Council has inked an agreement with Industrial and Commercial Bank of China to cooperate on developing new gold investment products and programs for Chinese investors. This program is designed to promote continued strong demand for gold in China. China's demand for gold has grown an average of 13% annually for the last five years, reaching 443 metric tons last year, second only to India. This Chinese bank has more than 16,000 branches in China and more than 200 million individual clients. One program that they plan to put into effect is a gold accumulation plan, which enables investors to buy gold in daily increments over a period of time. This would be an exciting program for them. It would also be an exciting program for us in the U.S. were it ever to be put into effect. They also commented that they can expect Chinese demand to continue growing strongly but supplies are declining. This is a prescription for much higher gold prices. It is among the reasons why Merrill Lynch, BofA, Goldman Sachs and others are forecasting significantly higher gold prices.

Given this news it would appear appropriate to consider owning gold or increasing gold holdings, if that should be appropriate. Call Goldline at 1-877-341-2646 for free information on getting started with gold. It contains excellent information and articles that you will find helpful and informative about the markets. Ask Goldline about their unique Price Guarantee Program. Call Goldline 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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