Overnight, December
gold reached a new record high of $1,059.60.
It subsequently fell back on profit taking and is currently trading at
$1,046.50. Nevertheless, it is in
positive territory and working on overcoming resistance at the $1,050
level. Silver reached a high of $17.93
and is currently trading up $.11 at $17.61.
The dollar is down 36 basis points at 76.13 and oil is trading at about
unchanged at $69.58 a barrel. Gold
pulled back off of its highs after the dollar rebounded from a low of
75.89. Some analysts say $1,045 is now
a key support level and failing to hold that would produce a correction. However, the market looks quite strong at
these levels and it appears to be consolidating its recent gains. This is the third straight day of new record
highs in Comex gold. Volume is good and
the moving averages are higher. There
is also huge demand for physical gold in one form or another, said the Dow
Jones Wire Service.
The rebound in the
dollar and the correction in gold occurred after a 33,000 decline in weekly
U.S. jobless claims. That statistic
offered some support for the dollar.
The Dow Jones Wire Service also reports that there has been "a lot of
fund buying." Larry Young of the
Infinity Brokerage told the Dow Jones Wire Service: "Many participants are
continuing to buy gold as a hedge against potential inflation. Some may turn to gold on a rate-of-return
basis, should the next round of corporate earnings only be average. Many are also looking at the metal as a safe
haven investment and as an asset allocation play." Young further said: "This is the last quarter of the year, so we
see a lot of new money going to work, and gold is becoming a larger percentage
of people's asset allocations for several reasons." He also pointed out that the first big wave of Baby Boomer
retirees is occurring over the next five years and he believes they are looking
for capital preservation. Gold serves
that purpose well.
The Dow Jones Wire
Service also stated: "Gold may correct, should commodity prices weaken and the
U.S. dollar strengthen, but any drop is likely to be short lived, as investment
demand appears likely to remain firm, says HSBC analyst James Steele ...' The next
target is likely to be an assault on the psychological $1,100 level." He also said there is a good argument
against the notion that gold is over extended.
Afshin Nabavi, head of the physical sales at MKS Finance said to the Dow
Jones Wire Service: "I wouldn't be surprised to see $1,100 an ounce sooner
rather than later." Nabavi added that
by the end of the year he expects gold to trade up to between $1,200 and $1,300
an ounce.
Given all of these
forecasts and the weakness of the dollar, it is responsible to consider
diversifying your holdings with gold and silver assets. Gold's performance has been spectacular, the
prospects are outstanding and the need to preserve wealth and purchasing power
is certainly at hand. Call Goldline now
to get started with gold at 1-877-341-2646.
Also, be sure you ask for the free information package, which contains
outstanding articles that you will find very helpful and informative, including
information on the movement towards a new global reserve currency to replace
the dollar. 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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