METALS FALL ON STRONGER DOLLAR AND FALLING OIL

by Joe Battaglia | July 29, 2009

Durable Goods Orders fell 2.5%, which was indicative of an economy still mired in recession. However, there are apparently some “green shoots” appearing, according to some analysts.Durable Goods Orders fell 2.5%, which was indicative of an economy still mired in recession. However, there are apparently some "green shoots" appearing, according to some analysts. Thus far, it is difficult to see them. Gold is trading down $5.90 this morning, in reaction to lower oil prices (down $4) and a stronger dollar. CNBC reported that China may have withdrawn some of its bid on treasuries yesterday, as a signal to the U.S. that we had better fall in line with their request to curb our deficits and debt. As a result, interest rates on the two-year notes rose. This is part and parcel of the summer doldrums-trading pattern that we have seen for the past month or so.

As I commented yesterday, JP Morgan/Chase Bank said gold buyers should buy the dips, as the dollar will resume its downtrend as we move out of the summer months. They are forecasting gold at $1,000 by year-end. Merrill Lynch is of the view that gold will reach $1,000 by early September. Some analysts such as those at Fortis Bank are forecasting $1,200 by year-end. All of this suggests that buying the dips is a sound strategy at this point. While the market clearly is vulnerable to further declines, particularly if gold closes below $934, it is nevertheless in a rising trend and that trend is a long and determined one.

Call Goldline today at 1-877-341-2646 for assistance in getting started. Ask them to explain Goldline's Price Guarantee Program, which can protect you against market declines for a period of two weeks. Ask them also for the free information package. That information package contains a free American Advisor Newsletter, the feature article of which is one written by Philip Klapwijk of GFMS. In the article he explains the reasons why China is accumulating so much gold. There are also articles from major sources discussing the BRIC's nations calls for a new global reserve currency and Forbes Magazine's articles about formal devaluation of the U.S. dollar. All of these news sources combined paint a picture of a dollar that cannot withstand our national debt increasing from $11.5 trillion to $18 trillion over the next eight years. Given the near certainty that the debt will actually grow to a larger number, I think that you should be planning on a dollar that will lose buying power much more rapidly than it has in the past. In the last eight years, the dollar has lost 18% of its value. That is a catastrophe for many savers. It may lose value at a more rapid rate going forward. Call Goldline at 1-877-341-2646 now for the free information package. Ask them how you can obtain a free one-year subscription to the American Advisor Newsletter, a $99 value for free. Call Goldline at 1-877-341-2646.

Ask Goldline 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 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.

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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