Gold and silver
have rebounded nicely this morning, with gold trading up $7.50 and silver up
$.30. Both are reacting to a softer
dollar, which is down 20 basis points at 76.23. The equity market is also higher as GDP for the 3rd
quarter grew 3.5%. This was a bigger
than expected increase in GDP growth.
New claims for unemployment were over 500,000 again, but continuing
claims declined as a result of people's benefits expiring. Christina Romer from the Administration said
that had it not been for the stimulus package, GDP would have hardly shown any
growth at all.
All of this
suggests that continuing stimulus is going to be needed to pump up the
economy. In another piece of good news,
the housing sector grew for the first time since 2005. However, analysts say that that is entirely
due to the tax credit for new homebuyers.
In other words, if you look at the overall picture, the growth was
clearly the result of the stimulus without which GDP may not have grown at all
or even been negative.
Oil is also up over
$1, which further benefits the precious metal sector. Perhaps Barclay's Bank will be correct in that a correction to
$1,035 may have represented the bottom in this corrective process. They have been forecasting that their
clients should buy the dip with the expectation that gold will rally above
$1,100 during November. Certainly the
seasonalities tend to support the gold market in November. Investors should look closely at the
precious metals as a method of preserving and protecting wealth and purchasing
power. With the massive amount of
stimulus that the Fed is pumping into the system, it appears increasingly
likely that the dollar will lose buying power at a more rapid rate.
David Rosenberg,
who was formally the Chief North American Economist for BofA/Merrill, said the
only way out of this fiscal mess would be monetizing the debt. In other words, they are forecasting that
the government will print money at an unprecedented pace in order to reduce the
burden of the debt. They also made a
fundamental argument that based upon simple supply/demand statistics compared
with the amount of currencies in circulation globally, that gold could easily
double and likely triple before this bull market is over. Rosenberg says that we are only a little bit
more than half way through this secular bull market in precious metals. If he proves to be correct, acquiring gold
at these levels would be an outstanding investment.
Call Goldline at
1-877-341-2646 for more information on utilizing gold for your portfolio. Be sure you ask for the free information
package and ask for a free copy of the 2009 GFMS Gold Update. That is a book that costs $450, but you can
receive it for free. Call Goldline now
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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