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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