Daily Commentary

Gold and Silver Market Strong

by Joe Battaglia
Posted: February 28, 2008

Gold and silver both opened higher adding to yesterday's gains.  This is a sign of extraordinary strength in the market.  I say this because the gains yesterday were substantial and today we continue to see follow through buying.  Silver is up $.13.  With gold having broken out decisively above the $950 level, oil up $1.16 at $100.80 a barrel, and the dollar continuing down losing 8 basis points to 74.13, one can say we have a perfect storm situation for the precious metals.  I would expect them to continue to bull upward.  The next significant level of resistance should be around $980 to $988.  From there $1,000 should be achieved quite easily.  I agree with many of the major bank analysts and others who think gold will probably hit $1,000 an ounce within thirty days.

The equity market remains weak with the Dow down nearly 100 points.  Analysts said rising oil and the falling dollar and stocks created safe haven demand for gold bolstering the price.  Carlos Sanchez, an analyst with the CPM Group said, "Gold has been that hedge against these uncertain times.  It's been the safe haven."  James Moore of the Bullion Desk told the Dow Jones Wire Service that continuing investment demand will ultimately propel gold to $1,000 an ounce.  One would expect to see some period of consolidation of the gains.  I believe we will take a week or two to develop a base above the $950 level to support a more substantial advance to the $1,000 level.  Clearly, the bull trend remains in tact and is likely to continue for some considerable period of time. 

Silver is also looking remarkable.  Silver supplies are very thin.  Silver is out performing gold at this stage of the cycle.  I would expect that silver will continue to out perform gold due to severe shortages and increasing demand.  For that reason, Goldline has begun a "Silver Special" to assist investors in taking advantage of this opportunity.  Acquire $5,000 worth of pre-1964 silver half dollars and you will receive free shipping.  You may also add other products to that order.  For example, you could acquire 29 Swiss 20 Francs and receive the 30th free, combine it with the silver investment and receive free shipping on the entire order.  Call Goldline now to learn more about that offer at 1-877-341-2646.

Be sure you ask the folks at 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 own personal and individual investing needs and objectives.  Investors who are looking for low transaction costs may wish to consider bullion assets like Krugerrands, Maple Leafs, American Eagles, 90% silver bags or bars.  Investors who would like to take advantage of 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, may wish to consider assets with collectible value such as the Swiss 20 Franc.  This program is not available with bullion assets.  These coins also provide some measure of privacy and protection against confiscation.  Call Goldline now to learn more about investing in precious metal assets at 1-877-341-2646.  

I also recommend that you ask Goldline for the free information package.  It contains excellent third party information source articles discussing the metals markets and many of the major banks and brokerage firms price targets.  You will find this very informative and helpful.  You will also receive a company brochure that explains the reasons why gold protects your savings against inflation, protects you against the falling dollar and can in fact have the potential to make extraordinary gains during economic conditions such as we see today.  You will also receive a Coin Facts Risk Disclosure booklet, which you should read carefully before making an investment.  Call Goldline for the 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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