The Independent
Newspaper out of London reported today that the OPEC oil producers are planning
to accept currencies other than the dollar and gold for their oil. They also said that Russia, China and others
were looking at abandoning the dollar as the principal pricing mechanism for
oil. That has since been denied, but it
focused attention on the dollar's reserve currency status and is very positive
for gold, said Dow Jones Wire Service.
They also said that any further such rhetoric about abandoning the
dollar would keep underpinning gold.
This caused gold to
shoot up to new all time record highs.
That movement in the gold market triggered buy stops and Dow Jones Wire
Service reported that funds are among the buyers, according the George Gero,
Vice President of RBC Capital. Gold
posted a record high of $1,038 on the December contract and is still trading
very close to that level. Silver
reached a high of $17.26 and is still trading very close to that, up $.69. The dollar is down 21 basis points at 76.43
and oil is up $.85 at $71.26 a barrel.
Other commodities are likewise higher.
The Dow Industrials are also moving higher, up 110 points as it is
widely expected that a weaker dollar and beggar-thy-neighbor currency policies
will be the juice to fuel the export market and perhaps help improve the U.S.
economy. However, we must also be aware
that it is the kind of situation going on at the moment that is destructive of
the wealth and savings of the middle class.
As the dollar falls, it is destroying buying power. This is one of the key reasons why so much
money is moving into the gold market.
I have been talking
about this for years. All of the things
that I have been forecasting for you are now occurring. I was surprised to hear analysts on CNBC
saying this morning that the dollar's status as the world's reserve currency is
coming into serious question. Many were
discussing the potential for a very aggressive decline in the dollar. They also said that at the G20 meeting the
participants were very concerned about the reserve status of the dollar and
enormous deficits that are being built up by the U.S. government.
Many analysts have
forecast that once gold pushes above $1,033 on a close, that it will quickly
move to $1,100 an ounce. Some analysts
including Fortis Bank and others have been forecasting that gold could reach a
high of $1,200 or more this year. This
is the kind of development that could cause gold to move to $1,100 quickly and
then on to $1,200 or perhaps higher in the near-term. Just in the last few days, Bank of America/Merrill Lynch said
they see gold moving to $1,500 over the next couple of years. Other major analysts are offering similar
views. In fact, Bank of America/Merrill
Lynch said on Monday, that they recommend gold and other assets as part of a
defensive posture. Those
recommendations tie in closely with a falling dollar.
On October 1st,
Dow Jones reported a headline that said: "Gold Heading For $1,100 - $1,200 By
Year-End." Deutche Bank sees gold above
$1,100 in the coming year. I have said
that is probably a conservative forecast.
Another analyst from the Gold Report said, peak gold and a weak dollar
means $2,000 plus. Jim Sinclair is
forecasting gold at $5,000. Whether
these lofty levels are reached remains to be seen. However, it is clear that the path for gold is higher and that
investors who have been accumulating gold are doing quite well.
Those who would
like to take advantage of the opportunities that are presented by gold should
contact Goldline at 1-877-341-2646 and ask for the gold investing package. Also ask for a free copy of the Grandich CD
or the Gold 2009 Update book, a $450 value that you can receive for free. 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 gold investment 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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