GOLD, SILVER NEAR UNCHANGED

by Joe Battaglia | July 21, 2009

Gold and silver are trading near unchanged with gold up about $1.20 and silver down about $.02. Basically, that's an unchanged day however with regard to gold, it is challenging $950 an ounce on the key futures contract and it would be significant if gold closes above that level. In order to be on its way to the $990 level, gold needs to trade decisively above $950. I would look for resistance between $950 and $960. Above that, $990 comes into view easily. The dollar is down 26 basis points at 78.64, but oil is up $.77 at $64.75 a barrel. The equities are mixed.

Fed Chairman Bernanke told congress today that they have the necessary tools for an exit strategy to prevent inflation from taking off. He said, "The extraordinary policy measures that they have taken in response to the financial crisis and recession can be withdrawn in a smooth and timely manner as needed, thereby avoiding the risk that policy stimulus could lead to a future rise in inflation." He said that some of the emergency measures put in place during the crisis have already started to wind down. However, in the view of many analysts, it will be impossible to unwind these extraordinary measures without a significant increase in inflation. Bernanke also wrote a detailed editorial for the Wall Street Journal in which he explains some of the things the Fed uses to drain money from the system. However, none of this was particularly enlightening as to how they can unwind this massive stimulus without first igniting inflation. He also said an extremely accommodating stance on monetary policy is going to be appropriate for a long time. Obviously, they are not anticipating any kind of significant recovery in the near future.

With the metals firm here and trading just below $950 on the gold market, it is an excellent buying opportunity. Clearly, there will be inflation ahead. If you own gold, it provides some insurance against the loss of buying power that comes with inflation. You may wish to ask Goldline for the details regarding the Price Guarantee Program, which provides a two-week window of opportunity to re-price your transaction in the event of a correction. Also discuss the various gold and silver products that are available to you. Call Goldline at 1-877-341-2646.

Be sure you also ask Goldline for the free information package, which contains outstanding articles. You will get a better feel for the macro economic outlook. In addition, you will receive a free copy of the American Advisor Newsletter. You may wish to read the new article written by Phillip Klapwijk, the CEO of GFMS, one of the two largest metals consultancies in the world. He discusses China's gold purchases and the reasons why they are buying gold. You will learn the reasons the Chinese government is buying gold are much the same as the reasons why American individuals and institutions are buying gold. Moreover, if you look at these articles and read carefully the articles calling for a new global reserve currency and other factors such as the potential for formal devaluation of the dollar, you will find that a picture emerges suggesting that there will in fact be devaluation and new money that will propel gold upward. Look also at the photocopies of the new currency and coins that were released to the G8 heads of state at their recent meeting. Call Goldline at 1-877-341-2646 now to receive the free information package.

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 products.

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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