Daily Commentary

Safe Haven Demand For Gold Continues To Grow

by Joe Battaglia
Posted: July 3, 2008

The September contract for gold reached a high of $959.60 where profit taking set in causing the market to pull back for a $10 loss in early trading.  Silver reached a high of $18.59 and then pulled back to a $.14 loss.  Most of the correction in the gold and silver markets were due to a correction in the dollar, which rose 45 basis points to 72.48.  Oil also rose aggressively overnight reaching $145.85 a barrel, but then pulled back to a $.70 gain at $144.27.  With today marking the last trading ahead of the Fourth of July weekend, much of the trading action we see is simply book squaring and profit taking ahead of the weekend.  This will be a light trading day with very few traders present on the floor.  Therefore, I would not put any significance on the correction we are seeing this morning other than it presents an excellent buying opportunity.

Gold, according to almost all of the major analysts is now headed for $1,000 an ounce.  Therefore, the opportunity is excellent to acquire on the "dip" today. 

Non-farm payrolls shrunk again, confirming the ADP report of yesterday.  Payrolls fell 62,000 during the month of June and also retreated by the same amount in May.  The economy has clearly slipped into recession.  The Dow and Standard and Poor's 500 have both fallen 20% from their October highs, confirming they are indeed in a bear market.  The Nasdaq has been in a bear market right along.  Therefore, safe haven demand for gold should continue to grow. 

The dollar bounced back today after the ECB raised rates ¼%, which is simply a short covering rally and has no significance.  The president of the ECB took a little softer tone on inflation and put more emphasis on growth risks.  Therefore, the ECB is likely to remain on hold for a while.  Those statements are the factor that motivated the profit taking this morning.

Today is a great opportunity for investors to acquire gold and silver at bargain basement prices.  Moreover, if you acquire Swiss 20 Francs or other forms of collectible assets, you can utilize the Price Guarantee Program, which gives you two weeks of protection against any further correction in the price of gold.  This is an excellent opportunity for investors to take advantage of.  Call Goldline at 1-877-341-2646 to get started. 

Goldline will also provide you with special reports quoting the analysts at Royal Bank of Scotland, Barclay's Bank, the BIS, Goldman Sachs and others forecasting a major drop in the equity market.  There are also quotes from Merrill Lynch and others forecasting a rise in gold to $1,000 an ounce and you will find comments from Citibank forecasting that gold could double or triple from today's levels.  You may wish to be specific about requesting a free copy of the CD interview with Frank Barbera.  To receive these free materials, 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, 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 Swiss 20 Francs, Double Eagles and Silver Dollars.  When you acquire 29 Swiss 20 Francs, you will receive the 30th coin for free.  Investors may wish to consider several tubes of these coins to obtain several free Swiss 20 Franc gold coins.  Call Goldline at 1-877-341-2646 for further information.

To receive the free information package including the four 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 company brochure and a Coin Facts Risk Disclosure Booklet, which you should read carefully before you make an investment. 

Goldline will also send you a free CD of the special interview with analyst Frank Barbera if you ask for it.  This is a remarkable interview and I think everyone would benefit from listening to it.  Call Goldline now to receive your free information package at 1-877-341-2646.

 

^{You should carefully read Goldline's Account and Storage Agreement and our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider. These provide important information that you should consider before investing in precious metals. 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 semi-numismatic coins such as the European francs, proof coins and graded coins. The market must go up enough to overcome this spread before an actual profit is achieved. All markets go up and down. 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 portfolio though others may recommend a different percentage. Please see Goldline's risk disclosure materials for additional information.}

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