Gold is higher this morning, well supported by a stronger euro that has risen to $1.35, and a sharp increase in crude oil to $70.19 a barrel. Dow Jones Wire Service reports that there is solid demand for physical gold along with bargain hunting and short covering all helping gold and silver move into positive territory today, as well as yesterday. The market is giving indications that it has found a bottom and that it is prepared to make a more substantial move to the upside. The Chicago Purchasing Managers Index fell to 60.2 in June from 61.7 in May which indicated a slowing economy. The expectation of the economy cooling may be a factor keeping the Fed on hold for some time. If economic slippage increases the Fed may be forced to lower rates before the year is over. The economy seems to be slowing rather considerably. The government's estimate of GDP for the 1st quarter of the year rose .7%. That compared with a 2.5% gain in the 4th quarter of last year. These are warning signals for the economy.
With oil now trading above $70 a barrel we may see further inflationary pressures due to higher energy costs. In addition, the dollar index is down .31, which is a significant drop to 82.02.
All of these factors are very supportive of the precious metals markets and are likely to confirm an extension of this market with a thrust to the upside. Merrill Lynch has been saying they think gold will be back at $700 an ounce by early fall. Many of the analysts think that gold will be in the $740 to $750 range by year-end. Therefore, I think that the precious metals present an outstanding buying opportunity at these levels.
Ask the representatives of Goldline 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 personal needs. Also ask Goldline about the various special offers. Goldline has begun its Fourth of July special offer whereby you will receive free shipping on any order of $1,000 or more. If you are a client of Goldline or if you become a client today, you can receive a free American Flag Lapel pin to celebrate and commemorate the Fourth of July. We encourage you to wear these American Flag Lapel pins proudly. Again, if you are a client this is absolutely free. Call to receive your pin now at 1-877-341-2646.
Goldline is also providing a free information package that includes a special article quoting from the Bank for International Settlements report warning about the potential for an extreme crisis in America. There are also the Aden Sister's report and a number of other articles that are extremely helpful to all investors and savers. You need to know what is going on with regard to the financial markets and with regard to interest rates and the value of the dollar in order to make sound investing decisions. Call now to receive this free information, which will also include special comments and reports from Merrill Lynch and many other investment banking firms. Call now, 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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