STOCK EUPHORIA FADES, GOLD HITS FIVE-MONTH HIGH

by Goldline.com | May 11, 2010

As of 10:40 a.m. EST, gold hit a five-month high at $1,218 an ounce on the New York Spot Market, and silver rose above the $19 per ounce mark for the first time in five months. "The euphoria we saw yesterday [in the equity markets] has almost ended. Gold has remained well supported on safe-haven demand, and we think it will drive further from here," said Commerzbank analyst Daniel Briesemann.

Stocks are down Tuesday as enthusiasm about Europe's nearly $1 trillion aid package turned back to worries about the health of the global economy. The Dow Jones industrial average (INDU) has lost 67 points, or 0.6%, the S&P 500 index (SPX) has lost 8 points, or 0.7% and the Nasdaq composite (COMP) has lost 19 points, or 0.8% (NYSE). U.S. light crude oil fell 13 cents to $76.67 a barrel.

In a recent article for The Daily Crux, investment analyst Porter Stansberry warned investors of his concern that “the world has officially entered what we believe will be the final chapter of the U.S. dollar's reign as the world's reserve currency.” Why is Stansberry so concerned? “Printing money to bail out borrowers around the world will not solve the problems of overleveraged governments or debt-ridden economies. It simply shifts the risks from private balance sheets to the U.S. government's. The U.S. dollar has assumed all of these risks. Our currency has become a ticking time bomb.”
(The Daily Crux, 5/11)

† 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.
Get Your FREE Investor Kit!
Learn how to acquire Gold and Silver
Complete the form below to receive your FREE kit:
Title:
First Name:
Last Name:
Phone:
Zip:
Please check this box to sign this form and confirm that Goldline may send its free investor kit to you and contact you using the phone number above.
Address:
 
City:
Country:
State:
Zip:
Please check this box to sign this form and confirm that Goldline may contact you using the email address above and send its free investor kit to you for free.
Your Investor Kit will include
  • An Introduction to Precious Metals
  • Advantages of Owning Gold and Silver
  • Popular Coins and Gold Products
  • How to Acquire Precious Metals and Rare Coins