The dollar is up 48
basis points this morning at 75.31 as President Obama is talking with the
Chinese about allowing their currency to float, thereby strengthening the yuan
against the dollar. There is some
profit taking this morning, however the correction is modest with gold down
$4.70 in early trading. Silver is down
$.11. After yesterdays enormous up move
those corrections are miniscule. Oil is
also slightly lower along with the Dow.
With the dollar rallying so much, a little profit taking was to be
expected. Perhaps the biggest surprise
is that gold did not correct very much given the strength of the dollar rebound.
Dow Jones Wire
Service stated: "Although gold is lower, it still remains well above $1,100 an
ounce, with the current most active futures contract up 27% on the year. Over that time, the U.S. dollar has slipped
more than 7% against a basket of currencies, boosting gold as a dollar hedge
while investors flee the greenback for hard assets, equities and higher
yielding currencies." They further
stated: "Some participants also remain concerned about inflation emerging on
the back of accommodative central bank monetary policy and government stimulus
measures to stem the economic crisis."
They also stated that central bank purchases have also been supporting
gold. "Late Monday, the International
Monetary Fund said it has sold two metric tons of gold to Mauritius." They further stated that Sri Lanka has also
been buying the metal.
Clearly, it appears
that the demand for gold outstrips the available supply and that is bullish for
gold. Dow Jones Wire Service also
reported: "The gold cash market is showing evidence of a very strong bull
market, and having completed two long-term continuation patterns, there is
scope for further gains toward projected targets at $1,229.60, $1,317.81 and
$1,323.50." This is according to their
Chief Technical Analyst Francis Bray.
Given those targets
from the Staff Analyst for the Dow Jones Wire Service, it would seem reasonable
to assume that gold has tremendous upside potential from these levels. That opinion would be confirmed by observations
from VTB Capital analyst Andrey Kryuchenkov who said: "$1,200 per ounce could
well become a self fulfilling prophecy as the speck frenzy continues." Barclay's Capital told Dow Jones Wire
Service that in the medium-term gold should target $1,500 an ounce, with a
near-term target of $1,150 later this month.
BofA/Merrill Lynch is also targeting above $1,500. Therefore, these are reasonable targets for
investors to anticipate.
To take advantage
of these forecasts by prominent analysts, call Goldline at 1-877-341-2646. Ask them to assist you in acquiring gold and
silver assets for your own investment holdings. In addition, be sure to ask them for the free information
package, which contains several articles that express the views of many of
these analysts, along with the company brochure, a free DVD and other
information that you will find very helpful.
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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