Daily Commentary

Gold Firms Above $1,000

Gold started the day softer, but rallied back strongly as the dollar weakened.  In early trading gold is up $5, while silver is trading at about unchanged.  The dollar, after having been as high as 77.48 on the index has fallen back 8 basis points to 77.10.  Oil is also softer, down $1.58 and the equity market likewise lower with the Dow down 37 points, which is a considerable improvement over the open. 

Gold had initially fallen back following the higher than expected U.S. non-farm payroll data.  Nearly 88,000 more jobs were lost than had been anticipated by some economists.  Payrolls declined by 263,000 in September.  In addition, the unemployment rate has risen from 9.7% to 9/8%.  The broader unemployment rate U6 is 17%.  The fact that gold came back so strongly is an encouraging sign for gold traders.  It points out that those analysts who have been recommending a "buy the dip" strategy have proven to be correct.

Dow Jones Wire Service reported that Tom Winmill, who runs the $115 million Midas Fund, thinks that recession weary investors will find gold's glitter alluring.  He stated that as the recession appears to be bottoming out investors are worried that prices throughout the economy might start rising.  In other words, inflation concerns are driving interest in gold, which has historically been viewed as a hedge against rising prices.  Gold has risen 13.4% since January 1st and is closing in on its all time high of $1,033.90.  Over the past 52 weeks gold is up 19.13%.

Dow Jones newswire's technical analyst says that gold's three-day and weekly trends are both bullish.  They stated: "The break above $998.50 is a positive signal that has opened a path to $1,017.50.  Bullish above $998.50 with targets at $1,011 and $1,020 in extension."  Similarly, they view silver as very bullish.  The CEO of Newmont Mining Richard O'Brien said: "I do think that we probably will see inflation coming in the next year or two ...' and as that happens I think we could see gold prices go above $1,200."

Given forecasts such as these, which we see with great frequency, gold appears to be a buying opportunity for today's investors.  Call Goldline at 1-877-341-2646 for assistance in getting started with gold or to add gold to your holdings.  To receive the free gold investor package that will assist you in making gold investing decisions, call 1-877-341-2646.  Be sure you ask for a free copy of the Peter Grandich interview CD.  Call Goldline 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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