GOLD'S PERFORMANCE STELLAR

by Joe Battaglia | October 07, 2009

Overnight gold reached a high of $1,049.70. When the New York market opened some profit-taking set in as the dollar rallied, pulling gold back to a $2 gain, with silver holding on to a $.09 gain. The dollar is up 20 basis points at 76.54 and oil is up only $.14 at $71.01 a barrel. The Dow Industrials turned lower, down 29 points.

Gold's performance has been particularly stellar, rising to new record highs every day. It has been rising so aggressively that some are questioning whether a correction might occur. Corrections are always possible and normal in all bull markets. However, analysts such as John Person, President of National Futures said that it would be, "Potentially hazardous to sell gold on anticipation of a big pull back." He further added, "Gold could quickly with increased volatility see a $30 to $40 move higher in the blink of an eye." I heard one analyst on CNBC this morning commenting that when gold breaks above $1,049.70 it could move to $1,100 very quickly and then on to $1,500 perhaps as early as the end of this year or early next year. In fact, he commented that gold could possibly hit $1,100 within a week or so. Whether that would occur remains to be seen. Investors should not, in my view, be speculating on near-term moves in the market.

It is interesting to observe that world gold demand seems to be driving the market aggressively. People around the globe are concerned about the dollar. Many question whether the dollar will be replaced as the world]s reserve currency. There are a number of articles that have appeared over the last two days discussing the likelihood that Arab states will stop selling oil for dollars and begin trading it in a basket of currencies that would include the Japanese yen, Chinese yuan, the euro, gold and the new unified currency planned for nations in the Gulf Cooperation Council. Moreover, countries such as Australia that have commodity-based economies are now raising interest rates as their economies are improving rapidly. All of this suggests a significant burst of inflation ahead.

Dow Jones Wire Service reported that MKS Finance Chairman Marwan Shakarchi forecast gold to rise to $1,200 an ounce by December. Fast Markets Executive Director Ross Norman said he is holding his end of year forecast at $1,250. Charles Gibson head of Mining at Edison Investment Research forecast that by 2013 gold will trade to $1,800 an ounce. Barclay's Capital forecasts gold to rise to $1,500. All of these forecasts appeared on Dow Jones News Wire this morning. Bank of America/Merrill Lynch is forecasting gold at $1,500 to $1,600 over the next couple of years. This week they recommended that their investors acquire gold as a defensive or safety position.

Given these forecasts, it seems reasonable to accumulate gold at these levels. Call Goldline today for assistance in adding gold to your holdings at 1-877-341-2646. If you have not started adding gold to your holdings, please call and ask for the free gold investor information package. You will receive the articles from the Independent Newspaper discussing that the oil producing states are in the process of moving away from dollars and into gold and other currencies to price their oil and to hold as reserves. Call Goldline at1-877-341-2646 to get this article and others that will assist you in arriving at a gold investing decision.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver products 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 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 decision. Call Goldline at 1-877-341-2646 now to receive your free gold investors 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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