METALS STRONG AND PERFORMING WELL
Gold and silver are sharply higher in early trading. Silver lead the move up and has gained $.23 in early trading and gold is up $5.20. The precious metals are looking quite strong and performing well as the dollar is down 32 basis points at 82.34. Oil is up $.07 at $59.10 a barrel and the Dow is down 21 points.
More and more hedge funds and other investors are moving into gold aggressively. The expectation is that the massive amounts of money the government has put into the financial system will, in time, release unprecedented inflation in our country. The inflation will likely be a global phenomenon as almost all countries have been aggressive in pumping up their economies.
April housing starts unexpectedly fell 12.8%. March housing starts were revised to a loss of 8.5%. Clearly, the housing market has some distance to go before rebuilding. Retail sales were also lower.
Mitsui Global Precious Metals forecast a high this year for silver of $16 an ounce. That would represent an outstanding gain from the levels that we are at now. Certainly silver and gold both appear to be excellent buying opportunities. It was reported on the Dow Jones Wire Service that hedge fund firms Paulsen Company and Lone Pine Capital made big bets on gold during the first quarter becoming the number one and number two shareholders in the gold exchange traded fund. Paulsen is one of the most successful fund operators and he now owns more than $2.8 billion worth of gold according to his latest SCC filing. Mandel's firm purchased $2.4 billion worth of gold. Others such as David Einhorn of Green Light Capital have also been aggressive buyers of gold. These firms have been buying gold when it was in a correction mode. Gold had dipped lower during the first quarter of the year. Consequently, they have been right on the market and have been enjoying extraordinary gains. Mandel is so bullish that he has put 20% of his hedge fund portfolio into gold assets.
In addition, fund manager BlackRock said in its weekly report that the consensus in the industry is that gold mining output has peaked and will not grow for the foreseeable future. He too is very bullish on the gold market. Clearly, the fundamentals of growing demand and falling supply would be considered fundamentally bullish.
Given the lead of these very prominent analysts, investors should be accumulating gold aggressively at these levels. Once a breakout above $935 occurs, gold will probably move up to test $1,000. When it does, it may not look back. In other words, this could be an ultimate long-term breakout of the most bullish nature. That seems to be the view of the Aden Sisters as well as many other analysts. Investors should take advantage of this opportunity to acquire gold now at these bargain basement prices.
Call Goldline at 1-877-341-2646 and ask them about Swiss 20 Francs, British Sovereigns, Maple Leafs, Eagles and other assets that might be suitable for you. Ask Goldline about the Price Guarantee Program and any specials that may be offered today. Be sure you ask for the free information package when you call Goldline. It contains fantastic information about investing in precious metals along with very important articles discussing the potential for formal dollar devaluation and the development of a new global currency. These are very important issues for all Americans. In addition, you will receive articles talking about China increasing its gold reserves and its desire to have its currency become a global reserve currency alongside the dollar. All of this information is vital for today's investors. Call now to receive your free information package and a new free CD interview with Frank Barbera. Call Goldline today at 1-877-341-2646.
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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 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.
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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..."
