Gold and Silver Post Strong Gains
by Joe Battaglia
Posted: April 7, 2008
Gold and silver are
both posting strong gains this morning with gold up $14 and silver up $.34 in
the first half-hour of trading. George
Gero of RBC Capital says there are a number of factors in gold's favor. He points to technical factors such as the
Comex data and the fact the dollar hasn't improved much. Crude oil also continuing to rally
strongly, up over $2 trading above $108 a barrel. Gero said, "There doesn't seem to be any way of stopping the
momentum in gold for the moment." The
fact that gold is up so strongly in the face of a 13-point rise in the dollar
to 72.16 is also a constructive development.
As gold finds its way above the $925 level, it is continuing the process
of base building and consolidation. The
same is true of silver. Joseph Foster
the manager of the New York based Van Eck Gold Funds said gold's current
correction in global spot markets is likely temporary as fundamentals still
look strong, indicating that the yellow metal could set fresh all time highs by
the end of the year. Analyst Clive
Maund says that silver looks very strong and seems to have formed a bottom through
this corrective move.
Perhaps one of the
key factors analysts are looking at is the competitive devaluation of
currencies. In the U.S. the Fed has
pumped the money supply to extraordinary levels in an effort to ease the
financial crisis and to accommodate massive deficit spending. Overseas central banks have been doing the
same and to some degree acting to balance their currency against the dollar so
as to not lose trade advantages. All of
these factors suggest gold is likely to continue to move into higher
territory. While clearly it is in a
period of correction and consolidation which was long over due, the
consolidation is occurring at a high level and may replicate some of the other
high level consolidations that we have seen over the past seven years. Clearly the longer-term outlook for precious
metals is bullish.
For these and many
other reasons, investors should be continuing to accumulate gold and silver at
these bargain basement levels. Call
Goldline and 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
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may wish to consider bullion assets such as Krugerrands, Canadian Maple Leafs,
American Eagles, Silver Bags and Silver Bars.
Investors who would like to take advantage of Goldline's Price Guarantee
Program, which gives you a two-week window of opportunity to re-price your
order in the event of a correction, should consider assets with collectible
value. This program is not available
with bullion assets. One of the coins
that does meet the requirements of the Price Guarantee Program is the Swiss 20
Franc gold coin. These coins have been
very popular. They are also part of
Goldline's special offers. Acquire 29
of them and the 30th free.
Silver investors may wish to consider 90% pre-1964 silver half
dollars. When you acquire $5,000 worth
of these half-dollars you will receive free shipping. You can combine both of these offers to receive free shipping and
a free Swiss 20 Franc gold coin. Call
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To receive the free information
package, which contains the company brochure, several third party independent
source articles that will be very helpful and the Coin Facts Risk Disclosure
Booklet, which you 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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