METALS UP, DOLLAR STEADY

Overnight gold dipped to a low of $1,097.70 on the February futures but bounced back nicely after the open to trade near unchanged levels. Silver gained $.11 in early trading after dipping overnight. The metals are up in spite of the fact that the dollar is steady, up 4 basis points and is helped by the oil market, which is up $1.63 at $74.29 a barrel. Oil shot up this morning, as there were reports that troops from Iran attacked an oil field in Iraq. Oil remains up, but off its high. The euro remains under some pressure from ongoing credit concerns about the fiscal health of euro-system members and sovereign debt. The dollar also rose against the yen after the Bank of Japan renewed its pledge to fight deflation.

In spite of those factors, gold has held nicely at current levels. While it is possible that some further correction will be seen next week as we move into the New Year, the outlook for the precious metals is strong. Most of the major bank analysts, including Goldman Sachs, BofA/Merrill Lynch, Barclay's and many others see gold moving upward in the New Year. While their ultimate high forecast for the year varies, nevertheless they all expect significant gains of 7% to 15% for the year. Morgan Stanley raised its forecast for next year by 20%. In addition, we are seeing a good deal of buying of physical gold from India and Asia. Dow Jones reported, "The correction in gold should be nearing its end, as the dollar's recovery is running out of steam, says Mitsubishi Corp analyst Tom Kendall."

Given these remarks and the expectation that gold prices will be substantially higher next year, many investors are viewing this consolidation as a great buying opportunity. Some investors are utilizing Goldline's Price Guarantee Program to provide them a two-week window of opportunity to re-price their order in the event that gold should correct further. This Price Guarantee Program has helped many Goldline clients to re-price their transactions and to obtain a more favorable entry price for their gold. Call Goldline now to learn the details of this special free offer. Call Goldline at 1-877-341-2646. Be sure you also ask for the free information package, which contains a report from BofA/Merrill Lynch giving their 2010 market forecast for both gold and oil. In addition, they will give you a free copy of the American Advisor Newsletter, which features an article by Philip Klapwijk, which is very informative and helpful. This article is not available anywhere else as it was written specifically for Goldline. Call Goldline at 1-877-341-2646 now to receive the free information package.

Investors should 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 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 on gold investing call Goldline at 1-877-341-2646. 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 at1-877-341-2646 now to receive your free gold investors package.

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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 Goldline's Account and Storage Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline's spread, which is the difference between the price we sell our products and the price we buy them back, generally ranges between 5% to 20% on our most common bullion products and 30% to 35% on all other products including our popular European francs, proof coins, silver dollars and half-dollars, and graded coins. 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 1-877-341-2646.
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