Daily Commentary

Everyone Should Own Some Gold And Silver

Gold was trading up $.70 with silver up $.10 in early trading.  The dollar is up 6 basis points at 72.81 and oil is down $.36 at $100.70.  Equities are soaring with the Dow up 155 points in reaction to the latest bailout of the banking system.  The new twist is that the Federal Home Loan Bank is going to buy between $100 and $150 billion worth of collateralized mortgage obligations in an effort to provide further liquidity to the financial system.  This is a direct taxpayer bailout by the Federal Home Loan Bank.  This combined with the Fed action means there has been about $500 billion pumped into the financial system.  Shareholders forced JP Morgan to double its bid for Bear Sterns.  European Markets are still closed for the Easter holiday.  Therefore I expect trading in precious metals to be somewhat subdued today. 

China's banking regulator issued a notice today officially allowing banks to trade gold futures domestically.  This is clearly a bullish development for the gold market.   However, it may take some time to demonstrate itself in terms of prices.  The biggest issue for the commodities markets is the fact that hedge funds seems to be diversifying and taking profits in the commodities in general and moving back into the equities.  That could keep some pressure on the commodities markets until they establish a new level of support and build a new base from which to launch moves to higher levels. 

Existing home sales rose for the first time in February, but the overall sales and the median price were both down year on year.  This might be suggesting there could be some improvement in the housing market near-term.  There are more signs of the economy slowing down.  The Chicago Fed said economic activity slumped to its lowest level in nearly five years in February.  They said this indicates an increase in likelihood that a recession has already begun. 

Given the action by the Federal Home Loan Bank and the continuing efforts of the Fed and the Congress to try to bailout the housing market along with other credit derivatives problems that exist in the financial system, it is highly likely that gold presents an excellent buying opportunity.  It is too early to tell whether the corrective process has been completed.  However, at these levels gold and silver are both bargain-buying opportunities and should be capitalized on by today's investors.  Silver trading at $17 an ounce in the futures market is a steal.  I believe that everyone should own some gold and silver.  This is an appropriate diversification to ones portfolio at all times and in all market conditions.  It is simply a safety or insurance asset that should be owned by all.  Moreover, the overall long-term trend for the precious metals remains decisively higher.  Therefore, the opportunity to acquire on this corrective move is very significant.

Call Goldline today.  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 who are looking for low transaction costs may wish to consider bullion assets like Krugerrands, Maple Leafs, American Eagles, silver bars and 90% silver bags.  Investors who would like to take advantage of Goldline's Price Guarantee Program that gives you a two-week window of opportunity to re-price your order in the event of a correction, you will want to consider assets with collectible value such as the Swiss 20 Francs as bullion products do not have this feature available.  Acquire 29 Swiss 20 Franc gold coins and the 30^th is free.  Those investors who have acquired gold and silver assets and qualified for the Price Guarantee Program within the last two weeks may wish to consider re-pricing your order at this time.  Only you can make the choice as to when you re-price your order.  Therefore you must be involved in this process.  Silver investors may wish to consider pre-1964 silver half-dollars.  Acquire $5,000 worth and receive free shipping.  You can combine the Swiss 20 Franc offer and the silver special and receive free shipping on your entire order.  Call Goldline now to learn the details of these special offers at 1-800-827-4653. 

Goldline is also happy to provide investors with a terrific free information package, which contains a number of new articles that are very helpful to all investors.  Call Goldline now to receive the free information package, which also includes third party independent source articles along with a company brochure and the Coin Facts Risk Disclosure booklet, which all investors should read carefully before making an investment.  Call Goldline at 1-800-827-4653.

Investors should be mindful that past performance does not guarantee future results. Transaction costs are generally 5% to 7% on bullion and 30% to 35% on coins. This is also referred to as the spread, or the difference between the buy price and the sell price. The market must go up enough to overcome this spread before an actual profit is achieved. All markets go up and down. Coins are a long-term, three- to five-year investment, suitable for 5% to 10% of the average portfolio. Please see Goldline's Risk and Disclosure Statement for further details.

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