
UTILIZE TODAY'S CORRECTION AS A BUYING OPPORTUNITY
Gold fell heavily today along with silver, as the dollar posted a large gain of 92 basis points to rise above 80 once again at 80.34. Oil and other commodities also fell back with oil down $.89 at $67.90 a barrel. Gold is down $21.50 and silver down $.63 in early trading. Gold now has broken support on the jobs data. Although a break and close below $960 today would worsen the near-term technicals, the lower prices may reactivate buying in the physical market. One analyst said if gold should drop as far as $950 there would be good business done on Monday, as the buyers would emerge in force.
The weakness in the commodity sector was due to the fact that the non-farm payrolls data showed that the U.S. economy lost 345,000 jobs in May. Economists had predicted a decline of 525,000. I have a feeling that those numbers are suspect. Jobless numbers are often revised by over 100,000 jobs. This number could be revised upward in a month or so. In this case the "birth death model" adjustment may have "added" 175,000 jobs. Nevertheless, the overall unemployment rate rose to 9.4% and if you look at the broadest measure of unemployment, it has risen to 16.4%. The improved jobs data produced a more bullish view on the dollar. However, I am convinced that is unfounded.
The stock market initially rallied on the jobless number, rising as high as 8,839. However, it has now given up all of those gains and is now trading at 8,749, about unchanged from yesterday. The Nasdaq is down 7.
James Moore, a well-regarded analyst, said that gold will continue to benefit from the long-term impact of the quantitative easing programs. He said further that technical resistance will slow gold's advance, but will not halt it. It is the consensus of people like Julian Robertson, the head of the Tiger Fund and one of the most successful investors in the world, that inflation is going to pick up aggressively. He is making bets that the dollar will fall and inflation will rise. Bill Gross of Pimco also shares the view that the dollar will lose its reserve status and it will fall aggressively, resulting in a hyperinflation environment. Warren Buffet, Jim Rogers, Mark Faber, and so many others share that view. These are highly regarded analysts and money managers whose views should not be overlooked.
Many analysts see today's pullback as a buying opportunity. In fact, the type of volatility we are seeing now is consistent with what had been anticipated by analysts such as the Aden Sisters. They forecast greater volatility in the market as we move into the third up-phase of this bull market. However, this phase in their opinion is going to produce new all time record highs. Analysts are continuing to focus on $1,000 an ounce in the near-term and perhaps $1,200 or more by year-end. From the position that we are in now, those seem like reasonable forecasts.
Utilize this correction as a terrific buying opportunity to acquire gold or add to your holdings. Some investors may wish to utilize Goldline's Price Guarantee Program, which provides you with a two-week window of opportunity to re-price your order in the event of a correction. This could be a helpful tool. Call Goldline at 1-877-341-2646 and ask for the details.
I strongly recommend that everyone call Goldline for the free information package. That information package has excellent articles discussing the reasons why gold is likely to post extraordinary gains. It also contains information from Northwestern Mutual Life Insurance, which recently purchased $400 million worth of gold. Their Chief Executive Officer Edward Zore says in the article that gold has little risk and tremendous upside potential. He believes the price of gold could double or even rise five fold, if the economy continues to weaken. If gold is appropriate for the third largest life insurance company in the country, a company that has been in business for 152 years, perhaps it is also appropriate for you. Read the free information package, listen to the free CD and make this correction work for you. Call Goldline at 1-877-341-2646.
Investors should contact Goldline and ask them to explain the features, benefits and cost structure of the various gold and silver investments 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 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 . Read these carefully before you make an investment. 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.
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- 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..."


