LOOK FOR GOLD BREAKOUT
Gold and silver both started the day higher, but slipped into negative territory as the dollar strengthened. The dollar is up 24 basis points at 78.48 on better than expected economic data. Durable goods orders rose 4.9%, which was the biggest gain in two years and new home sales were better than expected as well. Both of those factors are likely due to stimulus efforts by the U.S. government. Clearly, gold remains range bound for the time being. Analysts are saying it is firmly within a range of $931.40 and $963.10. However, August is generally one of the worst months of the year for precious metal prices and September, October and November are among the best months of the year historically. Consequently, most analysts believe that gold will make a breakout move in the next few weeks.
Yesterday, Barclay's Bank said they see gold moving above $1,000 an ounce in September. "We are looking for a breakout above $1,033 next month." JP Morgan Chase, Standard Chartered Bank, Merrill Lynch and others have similar views. A good part of those forecasts for higher gold prices are due to the risks to the dollar. Nobel Prize-winning economist Joseph Stiglitz of Columbia University said the dollar's role as a good store of value is "questionable" and the currency has a high degree of risk. Moreover, his comments indicated, "There is a need for a global reserve system." In other words, he is calling for a new global reserve currency to replace the dollar. Along similar lines, Jim Sinclair, one of the most prominent analysts says he believes that gold is building a base from which a rally up to $2,500 to $3,000 is very likely, with a possible rise to $5,000.
These forecasts are obviously longer term, but nevertheless, they are indicative of the positive sentiment towards gold over the longer term. Silver likewise has excellent potential on the upside. Sometimes we neglect to focus on the fact that silver has been performing well this year. So far this year, silver is up over 26%. That makes both silver and gold among the best performing assets for the year and particularly over the past 52 weeks.
Given these forecasts from very prominent analysts, it is important that investors consider acquiring or adding to positions at these levels. Gold continues to be bargain priced below $950 an ounce and, it has excellent upside potential. Therefore, it merits consideration in today's market environment. Call Goldline at1-877-341-2646 for assistance in getting started. Be sure to ask them about the special offers on British Sovereign coins. There are some attractive offers that investors may wish to take advantage of.
Also, ask Goldline for the free information package. You will be able to read some of the articles quoting these major banks and brokers who believe that gold is headed above $1,000 in the near term and you will receive articles and information on the future of the U.S. dollar as the world's reserve currency and the potential for formal dollar devaluation. If you are properly prepared for these kinds of events, they actually have the potential to make you a lot of money. If you are not prepared, the losses could be devastating. Therefore, you should read these articles to be properly informed about the financial and economic events that are occurring in our world today. Call Goldline at 1-877-341-2646.
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 a purchase. 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.
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- S&P Capital IQ - Gold: $1,900 (in 2012) "Leo Larkin, metals and mining analyst at S&P Capital IQ, thinks that $1,900 gold might not be that much of a stretch [in 2012]. 'Gold has been ..."
- Citigroup - Gold: $2,300 - $2,400 (by end of 2012) "While we remain cautious on Gold in the near term...we continue to believe that the bull market remains intact...we believe that 2012 may be..."
- Leeb Capital Management - Gold: $2,500 - $3,000 (in 2012) "I'll give you my target for gold at the end of 2012, it's going to be trading somewhere between $2,500 and $3,000. This..."
- Global Hunter Securities - Gold: $1,800 (in 2012) "'What I am looking for is a gold price of $1,800 an ounce in 2012,' says Jeffrey Wright, senior research analyst at Global Hunter..."
- US Global Investors - Gold: $3,600 (by 2017) "'People get so caught up with the next three minutes for gold and they should really be focused on the next three years,' says Frank Holmes, ..."
- Goldman Sachs - Gold: over $1,900 (in 2012) "Wall Street investment bank Goldman Sachs predicts that gold's bull run will continue into 2012 with a low interest rate environment and..."
- CNBC - Gold: $2,400 (no period given) "Gold will top $2,400 an ounce. The long-term bull market in gold marches on. Gold won't make a straight shot to a new inflation-adjusted high. As long..."
- Nomura - Gold: $2,000 (by end of 2012) "Nomura has raised its forecast for gold prices to $2,000 an ounce by the end of 2012, from $1,800 earlier. The brokerage said the low-interest rate..."
- Morgan Stanley - Gold: $2,200 (in first half of 2012) "Gold will lead a rally in commodities in 2012 as Europe's sovereign-debt crisis continues to roil financial markets, spurring demand for ..."
- UBS - Gold: $2,050 average in 2012 "[Gold] remains one of the top commodity picks for 2012 as 'most of the factors that pushed gold higher in 2011 are not going away,' according to UBS..."
- Bank of America Merrill Lynch - Gold: $2,150 - $2,200 (average in 2012) "From a technical perspective we believe that the bull trend for gold remains intact… with gold having not yet met any of..."
- TheStreet.com - Gold: $2,500 (by May 2013) "I want to own gold here. I think gold is going to $2,500 eighteen months from now... Gold has been up for ten straight years and this going to be the..."
