Gold continues to
show strength up $2.00 this morning as the dollar as fallen back
aggressively. Gold reached as high as
$1,069.70 and silver reached a high of $18.08 (basis Dec.) in early trading. However, profit taking set in particularly after gold did not
hold on to a breakout above the $106 resistance level. With the dollar down 202 basis points it is
clearly in serious trouble at this point.
The dollar is trading at $75.96 on the index. Oil up $.26 at $73.53 which is well off it's high of $74.47. The equity market is lower with the Dow down
50 points. Gold rose to a new record
high as the dollar remained on the defensive with technical buying triggered on
the metal's rise. Nevertheless, it is
normal and reasonable to have some profit taking along the way. The gold market has had a series of
consecutive up days with almost no corrective days. That is remarkable as corrections are normal. Silver after reaching it's high and
subsequent pull back on profit taking actually dipped in the negative territory
down $.12 to $17.70.
Andrew Montano,
director of precious metals at Scotia Mocatta Bank said that "It may not be
until we see 1100" before a correction occurs.
Gold could certainly make a move to $1100 without correcting, as other
analysts quoted by Dow Jones wire service seem to share the same view. The impetus for the profit taking occurred
as the dollar rallied from its low of $75.74.
However investors should be aware of the fact that the dollar has been
very over sold. And is, therefore,
entitled to some kind of "dead cat bounce."
We should only look
back over the last 2 years when gold was trading at much lower levels we had
the dollar as low as around 72 on the index.
This would indicate that gold is much stronger now than it was a year
ago. Dow Jones wire service said that
they expect gold to trade to $1100 an ounce in the first quarter of 2010.
Several weeks ago
when oil was trading at much lower levels I reported that Goldman Sachs was
forecasting oil at $80 a barrel. Having
reached above 74 it looks like that forecast is going to be spot on. In fact it could end up being low. One analyst, Charlie Aitken, said that the
Chinese are buying spot gold. He said
"The price action in gold, where every price dip sees buying support, suggests
someone is operating in the market soaking up gold. Our strategy is to be long everything China is short and from a
portfolio perspective China is underweight gold as an asset class." Dow Jones reported that Aitken said that
gold is poised to head to $1200 an ounce.
Given forecasts of this magnitude from prominent analysts investors
should consider owning gold at these levels.
Call Goldline today for assistance in acquiring gold at
1-877-341-2646. It would also be
helpful for investors to read the free information package. It contains excellent articles and
information that will assist you in understanding the benefits of owning gold as
a portion of your holdings. Call now
for the free gold investor information at 1-877-341-2646. If you ask for a free copy of the GSMS 2009
gold update they will send it to you.
This is a $450 book and you can get it for free simply by asking for it.
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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