GOLD UP ON THE WEEK

by Joe Battaglia | June 26, 2009

Gold and silver are higher this morning with gold up $6 and pushing through the $940 resistance level with ease. Silver is up $.19, trading at $14.20 an ounce in the nearby futures. The rally in the precious metals is due largely to a drop in the dollar, which fell 56 basis points to 79.84 on the index. The equity market is also showing weakness this morning. By ending the week on a positive note and in a breakout mode, gold is demonstrating considerable strength. It is likely that gold is nearing the end of its period of consolidation.

Technical analysts have indicated a breakout above $960 is probably going to lead us back above $1,000. One analyst yesterday commented that gold has traced out an inverted head and shoulders formation on the charts. They said when gold breaks above $960 the neckline of the technical pattern will be in a completion process. A break above $990 to $1,010 will ignite a move up to $1,300 an ounce with the potential to rise as far as $1,500 an ounce. These are constructive technical observations on the metals market and I think bear considerable attention.

When you look at some of the news items that cross the wire services, you begin to realize the need to own some gold. For example, California is now set to issue IOUs as the fiscal crisis intensifies. There is a $24 billion budget deficit and the legislature cannot reach agreement on what kinds of programs to cut to balance the budget. This is the country's most populous state and it has a grid locked legislature. Other states have similar problems. This is a cash shortfall not seen since the Great Depression, according to the controller. Legislatures have absolutely no concept of balancing a budget. They think they can deficit-spend forever. The Federal government has the same attitude. No one wants to cut their favorite program or the pork-barrel projects that enable them to buy the support of voters and contributors. Consequently, we have this massive budget mess that is leading our country into a devastating crisis. There is no doubt that a crisis of this magnitude will ultimately lead to a collapse of our currency.

That is precisely what the Chinese and other governments are concerned about. It is the key reason why they are moving away from U.S. dollars and into gold and other forms of commodities that have real intrinsic value. We have been giving away articles that describe this process and that discuss the demands by China and others to move to a new global reserve currency to replace the dollar. These are vitally important articles and information for all investors. That is why I strongly recommend that everyone call for the free information package. Articles discussing the potential for formal devaluation of the dollar are also critically important. Goldline will also provide you information on gold in IRA accounts and 401(k) roller over accounts. Call Goldline at 1-877-341-2646 for your free information package.

Investors who have been waiting to get into the gold market should wait no longer. This is a great opportunity to get into gold and silver at bargain-basement prices. Call Goldline today at 1-877-341-2646 for assistance in getting started with gold or silver. Goldline has available the popular 1 Ducat coins at around $180 each. Acquire a tube of 100 for only $18,000.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver investments that are available to you. 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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