
METALS CORRECT
Gold and silver are both lower this morning, with gold down $7 and silver down $.20 in early trading. The correction coming at this time is a good development as it allows this market to correct and consolidate at a high level, and relieve an overbought condition on the charts. This will pave the way for the building of a base and another advance to higher levels. This correction provides investors an opportunity to acquire gold and silver now at bargain-basement prices. The correction may not last long. Therefore, investors should act as promptly as possible to accumulate positions. The correction was prompted by a rally in the dollar, up 62 basis points to 79.03. The dollar remains very weak, but likewise, it has been oversold and needs a bit of a rally to correct that oversold condition. The equity market is also weak, down 90 points and oil is down $.66 at $67.89.
Recent data showed that U.S. factory orders were up less than expected, as was the ISM non-manufacturing index. Bernanke commented that rising yields indicate a greater optimism about the economic outlook, but he said that the growth would remain below its long run potential for a while. More than likely the economy won't begin to rebound significantly until sometime next year. Bernanke also urged lawmakers to commit to reducing the nearly $2 trillion budget deficit, warning that the government can't borrow indefinitely to meet the growing demand on its resources. He said, "Unless we demonstrate a strong commitment to fiscal sustainability in the longer run, we will have neither financial stability nor healthy economic growth."
Given the composition of this Congress and their propensity to increase deficits year after year, it is unlikely they will take any significant action to reduce the deficits. Reducing deficits costs votes. One thing politicians don't want to lose are votes, because they like their positions.
During the correction today, gold has held steadily above support at $970 an ounce. Moreover, analysts believe the dollar is likely to begin weakening again against most currencies in the coming days, which should assist gold in challenging the $1,000 market, reported the Dow Jones Wire Service. German Chancellor Merkel made comments today that indicated that she has little confidence in central banks' ability to drain liquidity from the system and the world economies recover. Her comments are probably spot-on and show common sense. She believes that inflation will rise and will be very difficult to contain. That is very bullish for gold.
During the brief time that I have been dictating this morning market memo, gold has been rallying, as has silver. Therefore, we might see gold closing above the $980 support level, which would be extremely bullish for gold. If that occurs and the correction is modest, I think we will see attack on $1,000 no later than the end of next week. Consequently, this is a great opportunity for investors to acquire gold at bargain-basement prices. Do not miss out on this opportunity.
Call Goldline today at 1-877-341-2646 to get started with your gold investments. Do not overlook the fact that analysts are now forecasting gold at $1,500 by next year and that there are doubts about the dollar and its ability to remain the world's reserve currency. Investors cannot afford to be complacent about this issue. Remember also that Northwestern Mutual Life purchased $400 million of gold, its first gold buy in 152 years. They certainly have professionals who analyze these markets carefully and probably are correct on their acquisition of gold at this time. Call Goldline at 1-877-341-2646 now to get started.
Goldline is giving away free copies of articles for you to review yourself and to analyze. We are also giving away a free copy of the CD interview I did with Frank Barbera and other information that you will find extremely helpful. Call Goldline now for your free information package at 1-877-341-2646.
Investors should contact Goldline and ask them 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.
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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..."


