Daily Commentary

Metals Trading About Unchanged

Metals are trading at about unchanged levels with silver slightly higher and gold less than $1 lower.  Oil has reached a new all time record high of $115.54 a barrel.  Some profit taking has caused it to ease back slightly from those levels, but it still remains in that $115 range.  The dollar has rebounded 15 basis points off of yesterdays significant decline trading at 71.56 on the index.  Analysts are saying that gold is now "eyeing" resistance at $960.30 an ounce.  I think that once spot gold pushes above $950 an ounce, it will be on its way to the $1,000 level.  The conditions that have driven gold up to these levels remain in place there seems to be no relief in sight.

Today, Merrill Lynch announced a huge loss and laid off over 3,000 people.  This is clear evidence that the problems in the banking sector are far from over.  Moreover, members of the Federal Reserve Board seem to be speaking every day about this crisis, trying to reassure people they are doing everything they can to stop the crisis and moderate the recession.  Make no mistake about the country is in recession and we are now seeing lots of retail store chains filing for bankruptcy protection.  As they go out of business, the malls get in trouble and other stores in those malls see declining sales because of declining traffic.  In other words, this is like a snowball rolling down hill.  Once it starts to gain momentum it just gets bigger and bigger.  It will take some time before this crisis runs its course.

In the meantime, we have to wonder what the conditions will be when the credit derivatives crisis is over.  For those who think it might be quickly over, simply have a look at what is happening in the credit default swap market.  Credit default swaps were $45 trillion a month or so ago.  They are now $62 trillion.  Everyone is scrambling to find some way of keeping these junk assets on their books.  Credit default swaps are an expensive way to do that.  It clearly demonstrates once these problems start to unwind, the leverage in the system will be an enormous burden on all of the banks and financial institutions. 

Turning back to the gold market, we see Dow Jones reporting if gold surpasses $951 an ounce it will revisit $1,000.  That is consistent with the forecast of many other analysts.  James Moore of the Bullion Desk says that gold will next test chart resistance at $955 an ounce.  Clearly, if you look at the forecasts of the analysts, before the year is over we will probably see gold in the $1,100 to $1,200 range.  That presents an excellent investment opportunity from today's levels.  Anytime you have upside potential of 15% or 16% over the course of an eight or nine-month period, you should take advantage of that. 

Investors should call Goldline today to get started.  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 looking for low transaction costs 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 very helpful and valuable Price Guarantee Program, need to select assets that have some collectible value.  With this program you get a two-week window of opportunity in which to re-price your order in the event of a correction.  In other words, Goldline takes the risk of loss for a period of two weeks after you have made your investment.  There is also a way to extend that offer at no cost until Friday afternoon.  Therefore, you should act very quickly to take advantage of this special offer.  Call Goldline at 1-800-827-4653.  This program is not available with bullion assets.  Swiss 20 Francs qualify for the Price Guarantee Program.  When you acquire 29 Swiss 20 Francs, you receive the 30^th Swiss 20 Franc gold coin for free.  When you invest $6,000 or more in qualified assets you also receive free shipping.  You can make these special offers work in your favor to assist you in accumulating precious metal assets.  There are excellent opportunities here for investors to get started today.  Call Goldline at 1-800-827-4653.

To receive the free information package, including a brand new article talking about the extraordinary opportunity that exists in the silver market along with other articles that discuss the problems with the dollar and the banking system call Goldline.  You will also receive the company brochure, which explains why gold is a "safe haven" asset and how serves to help investors protect the buying power of their savings and perhaps enable them to enjoy significant gains.  You will also receive a 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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