Daily Commentary

Gold to Move Substantially Higher

Gold and silver are lower this morning but have moved up well off of their lows.  The key futures contract in gold continues to hold above $950 and silver, while down $.17 is still at $18.21 an ounce.  Oil is up about $.10 at $105.98, retreating from a high of $107.70 after fighting in Basra resulted in the explosion of a major oil shipment pipeline.  The dollar has rebounded slightly from yesterday's heavy losses, up 7 basis points at 71.58. 

Analysts reported that a fund sold 500 contracts in gold to take some profits.  It is interesting that the market absorbed that quite well and continues to want to move higher according to the Dow Jones News Wire.  The source told Dow Jones that the selling was possibly spurred by the stronger dollar this morning.  Ross Norman says that the correction we saw over the past two weeks is a positive factor as some of the speculative froth has been taken out of the market.  He also said that gold looks set to make its way higher with $970 an ounce as the key immediate target.

Yesterday, we commented that a number of analysts see gold moving substantially higher.  Eric Sprott a noted fund manager said he sees the financial turmoil pushing gold to $2,000 an ounce.  UBS Bank's analyst Tony Lesiak told the Financial Post that he sees gold as well positioned for growth and that it could potentially double in price.  Investment manager Blackrock, which the government has charged with the responsibility of assisting in the liquidation of Bear Sterns, says they see gold in a continuing gradual rising trend, which could lift gold to new highs above the precious record of $1,030 an ounce.  Joe Foster who manages two of the Van Eck family of funds, says that gold may hit $2,000 in the next several years.  These are all prominent analysts who believe that the conditions are in place for the precious metals to make substantial moves to the upside.  That is especially true for gold.

Gold has now rebounded about $50 from the lows.  It deserves a bit of a rest and should consolidate here.  Investors have an excellent opportunity to acquire gold again at bargain basement prices.  Take advantage of this opportunity.  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, which obviously has provided benefits to those who used it over the past two weeks, will need to consider assets with collectible value such as Swiss 20 Franc gold coins. When you acquire 29 Swiss 20 Francs not only do you have the benefit of the Price Protection Program, which gives you a two-week of opportunity to re-price your order in the event of a correction, but you will also receive the 30^th Swiss 20 Franc free.  Investors interested in silver may wish to consider acquiring $5,000 worth of pre-1964 silver half-dollars, and receive free shipping.  You can combine both of those offers to obtain a free gold coin and free shipping.  Call Goldline now to learn the details of these special offers at 1-800-827-4653. 

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