December gold is
trading up $7.70 at $1,092.70 an ounce, while silver is up $.28. Gold reached a new record high of
$1,096.20. Gold continues to trade near
the high and appears dead set on heading above $1,100 an ounce. Barclay's, which correctly forecast the move
to $1,100 during the month of November, is now forecasting that gold will rise
to $1,140 an ounce in the 2nd quarter of next year. In other words, they obviously expect some
form of a consolidation around the $1,100 level. That would be normal, as $1,100 should prove to be a significant
resistance level. However, the track
for gold seems to be considerably higher.
There are quite a
number of analysts who think gold has the potential to reach $1,200 to $1,300
before year-end. In fact, since large
round numbers, such as $1,100 are widely anticipated to be resistance levels,
it may prove to be that there is no resistance at that level. No one has a crystal ball to determine
whether a correction will occur or the extent of that correction and
consolidation. What we have witnessed
over the past couple of years is that the periods of correction and
consolidation are modest and present excellent buying opportunities. Given the tremendous momentum in this
market, it would appear that buying gold at anything under $1,100 is going to
prove to be a bargain.
There are a large
number of analysts who think $1,500 to $2,000 are achievable targets for gold
over the next couple of years. Among
them are Merrill Lynch's top analyst Francisco Blanch, who anticipates gold at
$1,500 to $1,600 in the next couple of years.
BofA/Merrill Lynch has consistently under forecast the gold market. Therefore, one might consider that forecast
to be a modest or moderate forecast and gold could easily move beyond that
level. Dow Jones Wire Service reported:
"(Walter) DeWet said the most likely outcome for gold once it breaks above the
$1,100 an ounce in coming months is higher prices."
Bart Melek of BMO
Capital was interviewed about the gold market on CNBC. He said that central banks are supporting
the gold market by diversifying some of their reserves into gold. Mark Haynes then said to him, what you are
saying is that this is a conspiracy to drive gold prices higher. Melek answered that it is not a conspiracy
and that he wasn't suggesting that at all.
He said that central banks simply have accumulated large numbers of
dollar and prudent money management requires that they diversify some of those
dollars with gold. Haynes appeared
miffed at that explanation. This
demonstrates that the major mass media is still very anti-gold. That is a positive thing and it indicates
that gold has a lot of room on the upside.
Those who have yet
to acquire gold as a diversifier for their holdings should do so at once. Call Goldline at 1-877-341-2646 for
assistance in getting started or for the free information package. Goldline is providing a free copy of a special
Forbes article written by congressman Ron Paul, as part of the free information
package. This is a very important
article in which he explains that the policies of the government with
profligate spending, borrowing and printing money will lead to a massive
devaluation of the dollar. He warned
that there is the potential for the dollar to devalue by 95% on an annual
basis. This would be catastrophic. Everyone needs to read this article. Call Goldline at 1-877-341-2646 and ask for
your free information package.
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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