Overnight gold
reached a high of $1,049.70. When the
New York market opened some profit taking set in as the dollar rallied, pulling
gold back to a $2 gain, with silver holding on to a $.09 gain. The dollar is up 20 basis points at 76.54
and oil is up only $.14 at $71.01 a barrel.
The Dow Industrials turned lower, down 29 points.
Gold's performance
has been particularly stellar, rising to new record highs every day. It has been rising so aggressively that some
are questioning whether a correction might occur. Corrections are always possible and normal in all bull
markets. However, analysts such as John
Person, President of National Futures said that it would be: "Potentially
hazardous to sell gold on anticipation of a big pull back." He further added: "Gold could quickly with
increased volatility see a $30 to $40 move higher in the blink of an eye." I heard one analyst on CNBC this morning
commenting that when gold breaks above $1,049.70 it could move to $1,100 very
quickly and then on to $1,500 perhaps as early as the end of this year or early
next year. In fact, he commented that
gold could possibly hit $1,100 within a week or so. Whether that would occur remains to be seen. Investors should not, in my view, be
speculating on near-term moves in the market.
Gold should be considered a long-term investment.
It is interesting
to observe that world gold demand seems to be driving the market
aggressively. People around the globe
are concerned about the dollar. Many
question whether the dollar will be replaced as the world's reserve currency. There are a number of articles that have
appeared over the last two days discussing the likelihood that Arab states will
stop selling oil for dollars and begin trading it in a basket of currencies
that would include the Japanese yen, Chinese yuan, the euro, gold and the new
unified currency planned for nations in the Gulf Cooperation Council. Moreover, countries such as Australia that
have commodity based economies are now raising interest rates as their
economies are improving rapidly. All of
this suggests a significant burst of inflation ahead.
Dow Jones Wire
Service reported that MKS Finance Chairman Marwan Shakarchi forecast gold to
rise to $1,200 an ounce by December.
Fast Markets Executive Director Ross Norman said he is holding his end
of year forecast at $1,250. Charles
Gibson head of Mining at Edison Investment Research forecast that by 2013 gold
will trade to $1,800 an ounce.
Barclay's Capital forecasts gold to rise to $1,500. All of these forecasts appeared on Dow Jones
News Wire this morning. Bank of
America/Merrill Lynch is forecasting gold at $1,500 to $1,600 over the next
couple of years. This week they
recommended that their investors acquire gold as a defensive or safety
position.
Given these
forecasts, it seems reasonable to accumulate gold at these levels. Call Goldline today for assistance in adding
gold to your holdings at 1-877-341-2646.
If you have not started adding gold to your holdings, please call and
ask for the free gold investor information package. You will receive the articles from the Independent Newspaper
discussing that the oil producing states are in the process of moving away from
dollars and into gold and other currencies to price their oil and to hold as
reserves. Call Goldline at
1-877-341-2646 to get this article and others that will assist you in arriving
at a gold investing decision.
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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