Daily Commentary

Gold Stolen From Canadian Mint

by Joe Battaglia
Posted: June 30, 2009

The dollar is up 10 basis points at 79.94 and that caused traders to sell down the gold market again on the last day available for month end, quarter end and half end of the year book squaring.  Gold is trading down $6 and silver is down $.08 in early trading.  Oil is about unchanged after having been higher.  The equity market is also slightly lower.  All of these markets essentially reacting to profit taking and book squaring.  Traders and fund managers can book profits to earn bonuses at the half-year mark.  There is also some profit taking and book squaring ahead of the holiday weekend.  Many of the floor traders and fund managers will try to take a long holiday over the Fourth of July.  That also affects the performance of the market, creating thin conditions in which markets can be more volatile than normal.

Looking at the basics and the fundamentals, gold remains in a solid and well defined bull market.  It is working its way through the consolidation period and building a base from which to spring board into higher territory.  Technical analysts consistently indicate that gold is developing an inverted head and shoulders formation on the charts, which is a bullish formation suggesting a big move ahead.  The Aden Sisters have commented on this as well as others, with many of the analysts forecasting a breakout to occur either in the later part of July or early August.  Merrill Lynch is forecasting that gold will be $1,000 an ounce by October.  Some analysts think we will see gold at $1,200 or $1,300 an ounce by year-end.

Standard Bank said they see some demand for physical gold on the dips.  Soon we will be moving into the Indian wedding season during which they purchase large amounts of gold for wedding gifts. That season should begin in about four weeks.  The additional buying in India should be enough to catapult gold into higher territory.  You have an abundance of analysts who view the actions by the Fed and the Federal Government pumping so much money into these damaged firms, as being extremely inflationary long-term.  It will be difficult to remove the liquidity that has been put into the system in any kind of an orderly manner.  Therefore, many wise and sophisticated investors are accumulating gold ahead of the inflationary event.  It is the equivalent of buying straw hats in winter.  You buy when the opportunity for a bargain presents itself.  That is the case with the precious metals complex today.  Notice that during this period of correction and consolidation there has been very little price movement to the downside.  That is an indicator that the gold market is strong.

There has been a rumor circulating that a considerable quantity of gold was stolen from the Canadian Mint.  That seems to be confirmed today by an audit that shows $15.3 million worth of gold has been stolen.  It is amazing that that amount of gold could be taken without anyone noticing.  Nevertheless, that seems to be the case.  One has to wonder whether all of the gold that is supposed to be in the Federal Reserve's custody is actually there.  These gold reserves have not had an independent audit since 1952.  It seems to me that it would be appropriate to have those gold reserves audited and indeed since the Fed performs a quasi-pubic function, it should have an independent third party audit as well.  Perhaps the General Accounting office could go in there and do an independent audit of the Fed.  Some congressmen have a bill pending to force such an audit.  If there should be gold missing from the U.S. government's reserves, then I think that would be an extremely bullish development for the gold market.  It would further call into question the trustworthiness of the Fed and the government itself.  It certainly would have a negative impact on the dollar.

There are many reasons to own gold, but preservation of wealth and safety are among the foremost reasons.  In times of economic and political stress, it is vitally important to have some gold as an insurance policy.  Therefore, all investors should take advantage of this bargain buying opportunity by calling Goldline at 1-877-341-2646.  Ask them to assist you in getting started with gold.  You may also wish to consider putting gold or silver into your IRA accounts or 401(k) rollover accounts.  Goldline can assist you in that process. 

Be sure you also ask Goldline for the free information package.  It contains excellent information about the precious metals, about the dollar and other key factors.  For example, there are several articles including some new ones discussing China and other countries demand for a new global reserve currency.  If this comes about, which it is likely to, it will certainly cause an explosive up move in the gold market.  Moreover, you will find information from respected analysts such as Gold Fields Mineral Services, which is forecasting that gold will make a new all time record high in the second half of this year.  Comments, observations and analysts by the top analysts at Merrill Lynch, Fortis Bank, and other financial institutions will also provide you with in sights that are not generally available to the public at large.  Call Goldline for the free information package at 1-877-341-2646.

 Investors should ask Goldline 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 American Eagles, Swiss 20 Francs, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars.  However, the Price Guarantee Program is not available with these assets.

If you would like to take advantage of the Price Guarantee Program, which provides you with a two-week window of opportunity in which to re-price your order in the event of a correction, you must select assets with some collectible value such as 20 Francs, Double Eagles and Silver Dollars.  Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program.

To receive the free information package including articles on the dollar, the economy and gold call Goldline at 1-877-341-2646. Goldline also provides several other helpful articles.  There are a number of other independent third party source articles that you will find extremely helpful and informative.  You will also receive the Client Account Agreement, a company brochure and a Coin Facts Risk Disclosure Booklet, read these carefully before you make an investment.  Call Goldline at 1-877-341-2646 now to receive your free information package.

 

^{You should carefully read Goldline's Account and Storage Agreement and our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider. These provide important information that you should consider before investing in precious metals. Goldline's spread, which is the difference between the price we sell our products and the price we buy them back, generally ranges between 5% to 20% on our most common bullion products and 30% to 35% on all other products including our popular semi-numismatic coins such as the European francs, proof coins and graded coins. The market must go up enough to overcome this spread before an actual profit is achieved. All markets go up and down. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average portfolio though others may recommend a different percentage. Please see Goldline's risk disclosure materials for additional information.}

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