METALS STILL BULLISH

by Joe Battaglia | April 14, 2009

Gold rose as high as $899.70 on the future’s contract but when it failed to penetrate that level, it turned south again on early liquidations.

Gold rose as high as $899.70 on the future's contract but when it failed to penetrate that level, it turned south again on early liquidations. Gains in the dollar put some pressure on the gold market and helped to prevent it from pushing through overhead resistance at $900. There are also some who consider that oil may stagnate near $50 a barrel in the short term as a result of declining usage reports by the IEA. Equities are also lower with the Dow down 101 points and oil down $.70.

There are some signs of slightly better performance at some of the big U.S. banks. That may be calming some investor's fears reducing some of the safe haven demand for gold. However, analyst John Reade of UBS Bank said the fundamentals of gold are looking a lot more attractive at current levels. After a nice up move yesterday the precious metals were entitled to some correction and we must remember that markets don't move in a straight line. As a consequence, gold continues to look like a buying opportunity with technical analysts reporting to Dow Jones Wire Service that metals look bullish at this point. A number of analysts are looking ahead and seeing inflation resulting from the extraordinary expansion of money supply and debt by the U.S. government and the Fed. In fact, Fed Chairman Bernanke expressed some concern about that in comments today. He indicated that they are going to have some difficulty dealing with increasing inflation down the road.

A large 1.2% drop in the PPI also put some pressure on the metals. It is obviously a sign of deflation. Given the fact that our government is spending trillions of dollars that it will not be able to finance, I suspect that inflation will continue to be a primary threat over the next several years. This is part and parcel of the reason why investors need to diversify with some gold in their holdings. Gold has proven its merit as a safe haven asset. It has in earlier times proven its merit as an inflation hedge. The combination of the two could produce stronger prices ahead.

Call Goldline today at 1-877-341-2646 for assistance in getting started. You should ask about their Price Guarantee Program, which provides a two-week window of opportunity to re-price your order in the event of a correction. It is a valuable tool for many investors. Call Goldline at 1-877-341-2646 to learn the details of that program. In addition you should ask for the free information package, which contains several articles discussing the potential for a new global currency as well as information discussing the potential for devaluation of the dollar. On top of that you can receive a free CD interview I did with Frank Barbera, and several other important articles giving forecasts for gold in the coming years and a free copy of the American Advisor Newsletter, a $25 value for free. Call Goldline at 1-877-341-2646.

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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