Gold is down about
$1 in early trading, while platinum and palladium are up. Silver is down $.18 in quiet dealings. Oil is also down $.85 and the equity market
is slightly higher. Dow Jones Wire
Service said gold traders are simply eyeing the movements in the dollar. The correction in the metals comes as the
dollar rebounds from its lows. After a
week where gold hit new record highs on an almost daily basis and after the
substantial gains that we've seen over the past month, a correction is
normal. Analysts however, have not
changed their view that by year-end gold will likely trade at about $1,200 an
ounce. Next year analysts look towards
anywhere from $1,300 to $1,500 as reasonable targets.
A BofA/Merrill
Lynch analyst said today that they maintain their $1,500 an ounce target. They sited the fact that emerging market
central banks continue to turn to gold and away from G10 government paper to
diversify their reserves. Clearly,
there is a movement away from developed market currencies as reserve
assets. This is being helped to some
degree by the fact that China's currency is gradually becoming a reserve asset
in its own right. In addition, the
movement to replace the dollar as the sole reserve currency is gaining
momentum. One analyst said to the Dow
Wire Service: "Given the underlying bull strength in this market, room exists
for further gains into record territory towards $1,150, and an equality move
off the April 2009 bull pennant low at $865 highlights the $1,188.40 area",
said Frances Bray Dow Jones Chief Technical Analyst for Europe.
Given this strong
movement away from dollars by central banks and the expectation of higher
inflation rates ahead due to the fiscal and monetary stimulus in the G10
countries, it is reasonable to assume that gold will make new record highs over
the coming year. That is why many
investors are adding gold to their holdings.
This week we have seen reports that traditional stock mutual funds have
been adding gold to their portfolios as a method to diversify and balance the
portfolios. Others are doing the same,
with hedge funds such as Paulsen's fund and Einhorn's Green Light Capital doing
the same.
Given the fact that
these folks are extremely successful investors, we should all be accumulating
gold at these levels. Moreover, the
fact that the government of India purchased 200 tons of gold at an average of
$1,045 suggests that that is a floor under the price of gold reducing risk to
today's investors. Barrick Gold also
announcing that it is closing out the remaining 1.9 million ounces of its hedge
book before September next year, adds further support to this market. It confirms their view that gold prices are
headed dramatically higher.
If you would like
to follow the lead of these very wise and successful investors, you should call
Goldline at 1-877-341-2646 to get started.
Ask them to provide you with the free information package on investing
in gold, which you will find very helpful.
Call Goldline at 1-877-341-2646 to receive the free information package
or to acquire gold and silver assets.
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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