Daily Commentary

Gold To Rise To $2,000 Amid Massive Inflation - Superfund Says

Bloomberg reported: "Gold may rise to a record $2,000/oz in the next three years as investors hedge against massive inflation sparked by governments printing money, according to Superfund Financial."

The metals are mixed this morning with gold up $2 and silver down $.10.  The dollar is up 6 basis points, oil is down $.65 and the Dow Industrials are down 17 points.  Gold erased overnight losses and moved back into positive territory as participants covered short positions to take some profits.  Dow Jones Wire Service said: "An arrested rise in the U.S. dollar Wednesday is supporting gold...'" The strength in gold this morning is impressive, particularly given the fact that the euro was lower against the dollar.  A firmer dollar creates negative pressure on the metals market.

Many analysts have said that gold is moving substantially higher this year.  However, because the market has gotten a little ahead of itself and has been a bit overbought, they believe this correction was needed and that the market could potentially get as low as $1,020 an ounce.  However, Barclay's has indicated that it is a "buyer" down to $1,035, with the expectation that gold will rally to a new record high above $1,100 before the month of November is over.  One London based trader said gold has excellent support at $1,030.

Looking at the big picture I was impressed with a report from the Chart Store indicating that the current breakout above a triangle formation, (which occurred when gold burst solidly above $1,000 an ounce) is similar to previous triangle formation breakouts.  Based upon those previous breakouts, they said investors might anticipate a move up to $1,456 or even $1,631.  The Chief Strategist for BofA/Merrill, Francisco Blanch said he still sees gold moving up above $1,500 an ounce in a three-year three-stage move.  This move began approximately a year ago.  Therefore, the next two years should be quite promising based on Blanch's observations.  Credit Suisse, in their latest report said they are overweight gold as they expect gold will continue to rise.

These are highly respected analysts from major firms.  If we assume that they have a good chance of being correct, then gold should be accumulated at these levels on the dip.  That has been Barclay's recommendation and it appears to be quite sensible.  Another trader told Dow Jones Wire Service at an international bank in Singapore said: "I regard this as a healthy correction, we are still on the bull track, I think."

To get yourself on the bull track in a rising trend market like gold, you should get started without delay.  Use the correction as your bargain buying opportunity.  Call Goldline at 1-877-341-2646 to acquire gold or silver on this corrective move.  Ask Goldline about their Price Guarantee Program.  If Barclay's is correct, the month of November will be positive for the gold market.  Therefore, if you utilize the PGP program you will have a two-week window of opportunity to re-price your transaction in the event the market should move lower.  This is not available to all investors, but you should ask Goldline to explain the program to you and to assist you in utilizing it.  You should also ask for the free information package, which contains quotes and articles citing a number of the major market analysts I quote on a regular basis.  If you ask for it, you can have a free copy of the 2009 GFMS Gold Survey Update.  That book sells for $450. 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, Swiss 20 Francs, 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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