Gold and silver are
both trading near unchanged, in spite of the fact that the dollar is up 8 basis
points and oil is down $.30. Equities
are higher with the Dow up 43 points in early trading. Dow Jones reported that overseas consumer
buying offset pressure from the rebounding dollar. The fact that there are signs that the economy may be recovering
should be considered positive for the gold market. As the economy recovers, the enormous amount of fiscal stimulus
that has been created should be a factor to increase inflation pressures,
thereby prompting more demand for gold.
Analysts told the
Dow Jones Wire Service that there has been bargain buying of physical gold and
some suggestion that jewelry demand in Asia may be picking up as the market
enters a seasonally strong period, according to Standard Bank analyst Walter
DeWet. Moreover, European consumer
confidence rose from an eleven month high.
Consumer confidence in the U.S. slipped slightly. The current employment situation seems to be
a key factor in those numbers as an increasing percentage thought that jobs
were hard to get.
The FDIC is seeing
so many bank bailouts that they have been forced to try to raise more money to
replenish their depleting fund. The
moved today to raise $45 billion by having banks prepay their premiums for
three years. This is a radical move and
it came as "condition of the U.S. banking industry continues to deteriorate",
said Dow Jones Wire Service. They also
said: "The number of problem banks and assets has increased rather
significantly in recent months, increasing the FDIC's estimated cost of bank
failures to $100 billion from $70 billion from 2009 through 2013." The FDIC tried to reassure the markets that
they have plenty of cash on hand for now with roughly $22 billion in liquid
assets as of June 30. However, by next
year they may need a significant amount of additional funding for the
additional banks that will be failing.
At the beginning of
October there will be a weeklong holiday in China. This, according to a Dow Jones Report is affecting the copper
market. Chinese copper buyers may be
absent from the market. This could also
be affecting the precious metals to some extent, as declining commodities in
general would put some pressure on that market. However, this would likely be a temporary situation. Richard Fisher, president of the Federal
Reserve Bank of Dallas said the Fed would need to be vigilant towards the
long-term inflation risk. He told Dow
Jones Wire Service: "As to the long-term dangers of inflation posed by the
expansion of the Federal Reserves balance sheet, I remain ever vigilant."
The latest Case
Schiller home price index indicates a tentative turn around in the U.S. housing
market. The index showed rising home
prices in 18 of the 20 metropolitan areas in July versus June. David Blitzer, chairman of the S&P's
index committee told Dow Jones Wire Service: "Home prices seem to be improving,
with some market areas sustaining the positive momentum." Once again, this would be indicating that
future inflation risks may be rising. Moreover,
in the first four weeks of September U.S. national chain store sales rose
.4%. All of these factors are certainly
green shoots that suggest economic recovery may not be too far off. However, unemployment and other areas of
economic activity may continue to be stressed to some degree.
In this environment
many investors chose to own gold. Funds
have substantially increased their net long position. Therefore, any dip maybe viewed by analysts as a buying
opportunity. This is particularly true
if the December gold futures hold above the $990 level. This level has been tested several times in
the last week and as it continues to hold it should be viewed as a positive
signal for the markets.
To get started or
to add to your gold or silver holdings, call Goldline at 1-877-341-2646. Ask them about their Price Guarantee Program,
which provides some protection in the event of a price correction. Ask them further for their gold investor
information package, which you will find helpful. You may also receive a free copy of the CD interview with Peter
Grandich, which you will find 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,
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 on gold investing call Goldline at 1-877-341-2646. 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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