METALS CONTINUE CORRECTION

by Joe Battaglia | June 10, 2009

Gold started the day substantially higher, trading up $9 in pre-market trading. It reached a high of $966.70, but in the first half hour of trading gave up most of those gains to trade up $1.20, with silver up $.05. The U.S. dollar index has rebounded, up 14 basis points at 79.91 and oil is simply on a tear to the upside, gaining $.96 at $70.98 a barrel. Oil has been as high as $71.65 in earlier trading.

Fed Governor Lacker said forecasts for the recession to end later this year reflect a "reasonable view" of the nation's economy. However, the housing market seems to have slowed down considerably in reaction to higher interest rates. New applications for home loans have fallen on the higher rates. That is likely to discourage home purchases.

On the other hand, the CEO of Goldman Sachs thinks the current rise in financial markets worldwide probably isn't the full recovery. He thinks a long continued recession should be expected. These conflicting views on the economy are likely to cause confusion. One of the factors that may have slowed the gold market during the first quarter of the year is that gold producers bought back hedge positions at the lowest pace since 2003. They expect that de-hedging will remain at lower levels for the remainder of the year.

For the moment, gold continues to be a dollar trade more than anything else. When the dollar was weak trading lower, the gold market was up significantly. As the dollar rallied, the reverse occurred. Nevertheless, we are in a period of correction and consolidation and this is to be expected. The fact that gold is holding above $950 is a constructive sign and should encourage people to take advantage of this opportunity to acquire gold and silver assets..

Those who would like to get started with gold should call Goldline at 1-877-341-2646. Ask them about Goldline's Price Guarantee Program that protects you against corrections for a period of two weeks after you make your purchase. I strongly recommend that you ask for the free information package. There is information in there that discusses the potential and the calls for a new global reserve currency to replace the dollar and the articles that discuss devaluation of the dollar. This doesn't just impact the gold market, it has wide ranging implications. Therefore, you should read this material and you should listen to the CD interview with Frank Barbera; he is a brilliant analyst. Call Goldline now at 1-877-341-2646 to receive the free information package.

Contact Goldline and ask them to explain the features, benefits and cost structure of the various gold and silver products that are available to you. Select those that best meet your own personal and individual needs and objectives. Those looking for low transaction costs may wish to consider bullion products 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 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.

To receive free information package on gold and precious metals investing, call Goldline at 1-877-376-2643.

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