Precious metals are
rallying robustly today with gold up $13 and silver up $.20. That is a nice rebound from yesterday's
correction. Gold is beginning the month
on a strong note and looking as though it will try to push considerably higher
as we move through the remainder of the summer. B of A/Merrill Lynch is forecasting gold above $1,000 an ounce by
October. Other analysts are forecasting
that gold will be between $1,200 and $1,300 an ounce by the end of the
year. Therefore, as we move through the
summer doldrums we should expect gold and silver to perform well. The dollar, which rallied yesterday, is
down 51 basis points today at 79.63 on the index. Similarly oil is up $1.72 at $71.61 a barrel and the equities are
up as well. The weaker dollar and
stronger oil both supported gold this morning as did some bargain hunting,
which occurred overnight in the Asian market.
Although gold is up
nicely today, recovering almost all of yesterday's correction, it nevertheless
continues to range trade and build a base above the rising trend line, which is
likely to lead to a breakout in the relatively near term.
This mornings ADP
jobs report showed that private sector firms cut 473,000 jobs in June, when the
market had been expecting a 400,000 loss.
That indicates continuing weakness in the U.S. economy. A number of analysts are forecasting that
unemployment will continue to rise into next year and may reach as high as
10.4%. Other data hitting the markets
today such as the ISM report also indicate that the economy remains weak
although improving. One analyst on
Bloomberg Radio this morning said that the Japanese economy is in even worse
shape than the U.S. economy. He said
their government also has horrendous financials. Their government is running a deficit in excess of 100% of
GDP. Layoffs are occurring at a massive
rate in Japan and this is affecting the very structure of their society. The economy is cratering and manufacturing
is basically in a depression. That
country may be in the final crash before a turn around. However, some analysts are of the belief that
Japan is on the verge of a crisis that could destabilize the country.
In the U.S.
lawmakers in half a dozen states are working to stave off government shutdowns,
as their revenues are not enough to cover their expenses. California is among the more notable of
these states as devastating service cuts and shutdowns are likely and the
government is about to issue IOU's, as it cannot pay its debts. This is the consequence of the years of
overspending, massive debt, and an inability of government to function on
behalf of the people. This is likely to
become widespread across the country and portends future problems for both our
economy and our political system.
These are again,
many reasons why investors are turning to gold in record numbers. It's also the reason why sophisticated
investors have been driving gold higher and higher, year after year for the
past ten years. Ultimately, all of this
debt and deficits by both the states and the Federal government will have to be
liquidated. As USA Today newspaper has
said, this debt can be liquidated by raising taxes (highly unlikely), cutting
spending (almost impossible), or inflation (the only likely alternative). Clearly, the government will devalue the
dollar, creating an inflationary scenario, which will reduce the burden of this
debt across the board. In time, it may
lead to a collapse of the currency and a run on the dollar, which would have
negative consequences for those who are not prepared for it. USA Today reports that inflation of only 2%
results in a loss of 81% of purchasing power over 30 years. Can you afford to lose that much? If not, buy some gold insurance.
We see many people
purchasing gold just for this particular reason alone. It is an asset that provides protection or
insurance against such a catastrophe.
Moreover, it is about the only asset that has been going up consistently
year after year for the past decade. It
is likely to continue to move higher for the foreseeable future as commodity
bull markets generally last between ten and twenty years. This market has yet to achieve a frothy
state, therefore the potential on the upside is excellent. We have a number of analysts forecasting
$1,200 to $1,300 an ounce for gold this year, and perhaps highs in the $3,000
to $6,000 range over the next five years or more.
Call Goldline at
1-877-341-2646 and get started with gold today. Goldline can assist you in acquiring gold, putting gold into IRA
accounts or 401(k) rollover accounts.
Be sure you ask for and read Goldline's free information package. You can have a choice of a free DVD or CD
and be sure to watch or listen to that material, as it is very helpful. Call Goldline now 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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