Daily Commentary

Take Advantage of Goldline's Price Guarantee Program

Fed Chairman Bernanke and other officials of the government will be speaking today to the Senate Banking Committee explaining the Bear Stearns bailout.  Bernanke's comments thus far this week suggest two things: 

First the Fed seems to have been very poorly informed not knowing about the Bear Stearns crisis until twenty-four hours before the bailout.  And, that the Fed Chairman was unaware of the terms of the bailout or what it will cost to have BlackRock manage the portfolio of $30 billion worth of mortgage backed bonds.  This speaks of incompetence. 

Second, Bernanke's comments have suggested that the economy will be stronger in the second half, which has undermined the euro and weighed on gold.  However the data that we get today from the labor department suggests that unemployment is at the highest levels since Hurricane Katrina.  This would suggest that the economy is weakening into the second half and that the Fed will need to be even more aggressive in trying to pump up the economy.  Lower interest rates from the Fed will continue to push gold higher. 

At the same time the IMF is calling for the global economy to slow and for the U.S. economy to be facing some of the worst financial conditions since the Great Depression.  This combined series of events would suggest interest rates may be declining across the globe and that could be very bullish for the gold market. 

It is also important to note the problem with mortgage foreclosures has not been solved.  Congress is talking about some very significant bailout efforts for the consumers and homeowners however, that may take some time to develop, and it may not be effective.

Given all of these factors we see nervous speculators continuing to take some profits in the gold market.  After a nice rally yesterday and a strong after market, gold is trading down $4 in early trading and silver is down $.08.  After a substantial up day yesterday a correction of this magnitude is not surprising.  However, we would all like to see the market turn around and be a little more stubbornly to the upside.  The gold market is reacting to a stronger dollar, which is up 16 basis points at 72.42 and softer oil down $1.42 at $103.36.  Equities are also lower as nervousness prevails in that market as well. 

The ISM non-manufacturing survey suggests some recovery in the services sector, but still is at levels, which suggest recession.  This too contributes to some nervous trading in the markets.  That is particularly true with new unemployment claims breaking the 400,000 mark – not a promising sign for the job market.  Initial claims for jobless benefits jumped 38,000 and continuing claims also rose to high levels.

Bernanke's testimony this morning continues to emphasize that the financial markets remain under considerable stress and that pressure in short-term bank funding markets have increased once again.  Lenders are reluctant to provide credit.  These factors suggest a potential worsening of the crisis and a much more aggressive policy by the Fed.  I continue to believe that will be bullish for the precious metals markets. 

Clearly, the actions that are being taken by the Fed and other central banks are increasing money supply and creating inflationary pressures.  We see that every day when we go to the market or the gas station.  These are some of the many reasons why it is important to recognize that gold is likely to remain in a substantial and powerful long-term up trend.  These are among the reasons why so many funds and other investors are adding gold to their holdings.  Remember, this is a bull market and bull markets tend to try to shake off investors.  They climb a wall of worry.  These are the kinds of conditions in which you want to be an investor in this market.  A consolidation around $900 is probably the healthiest thing that could possibly happen to this market.  Therefore, take advantage of the period of consolidation to acquire or to add to your holdings. 

One of the unique benefits that Goldline provides with the Swiss 20 Franc is the Price Guarantee Program.  With this program you have a two-week window of opportunity in which to re-price your order in the event of a correction.  Therefore, investors could very comfortably enter this market today, buying on the slight dip and feeling comfortable, protected and confident in their investment.  Call Goldline today and ask them about the details of this special offer and remember when you acquire 29 Swiss 20 Francs you get the 30^th free.  You may further ask them to explain the features, benefits and cost structure of the various gold and silver investments that are available to you so that you can 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 Krugerrands, Canadian Maple Leafs, American Eagles, Silver Bags and Silver Bars.  The Price Guarantee Program is not available with the bullion assets.  Investors who which to take advantage of the Price Guarantee Program will need to look at assets like the Swiss 20 Franc.  If you would like to consider silver examine the opportunity with pre-1964 silver half dollars.  Acquire $5,000 worth of them and receive free shipping.  You can combine both of these offers to receive free shipping and a free Swiss 20 Franc gold coin.  Call Goldline now to learn the details of these special offers at 1-800-827-4653.

You may also wish to get the free information package that is available to all investors.   The free information package contains the company brochure, which explains the reasons why people acquire gold and the benefits that it could provide to you.  You will also receive outstanding third party independent source articles that explain what the world's most prominent experts think about gold as an investment asset.  We've put a brand new article from MSN into the package.  It discusses the reasons why some prominent experts believe that gold will be above $1,500 an ounce in the next 18 months.  Goldline will also provide you with a free Coin Facts Risk Disclosure Booklet, which you should read carefully before making an investment.  Call Goldline now to receive the free information or to get started 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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