Gold is being
carried upward on its own momentum.
Traders and investors are buying gold simply because it is rising and
performing better than any other market.
This morning gold reached a high of $1,153.40 an ounce on the key
contract, and silver reached $18.86 an ounce.
These moves are indicative of a very powerful bull market that is likely
to carry substantially higher. Earlier
in the week I commented that Barclay's Capital had forecast that gold would be
$1,150 soon and that it would reach $1,200 by year-end. They continue to hold that forecast. Obviously, the $1,150 target has been
reached. Gold is well supported by a
weaker dollar, down 36 basis points to 75.01 on the index. Earlier the dollar dipped as low as 74.90,
which is the first time its broke 75 in over a year. If the dollar falls back to the 70 to 72 level where it has been
before, analysts think it will propel gold substantially above $1,200 an
ounce. Oil is also up $.44 at $79.58 a
barrel and the equity market is down with the Dow down 67 points.
Dow Jones Wire
Service said that there are also signs of good demand for physical gold. Walter DeWet of Standard Bank said: "We
believe buying momentum will remain positive for most of the 4th
quarter on high seasonal demand." As a
result, DeWet said he believes "the current gold rally still has some legs
irrespective of high investment demand."
Barclay's Capital analyst told the Dow Jones Wire Service that investors
are flocking to gold as they flee the dollar and put money into hard assets
equities and higher yielding currencies.
Some are also concerned about currency debasement stemming from
government debt. Some also see
inflation emerging longer-term as a result of accommodative government monetary
policies and are buying the metal as a hedge against rising prices. The Consumer Price index rose 0.3%, which
was slightly more than had been expected.
That too is supportive of gold.
This morning CNBC
interviewed the President of the World Gold Council who rang the opening bell
on the floor of the Exchange. They had
$1 million worth of gold bars on the floor of the Exchange and everyone flocked
around the gold. The analyst from CNBC
had a productive interview with the President of the World Gold Council and he
pointed out that gold has excellent upside potential from these levels. He said that many are acquiring gold as a
method of diversification of their equity portfolios. He confirmed that there are many reasons to own gold,
particularly its negative correlation with equities. The fact that CNBC promoted the interview, showed the gold, and
had a lengthy interview is all indicative of a change in sentiment in the investment
community. Gold is no longer being
viewed as an outlier investment. It is
now being considered a mainstream method of diversifying portfolios and
protecting against currency debasement and rising inflation expectations.
Investors who have
not acquired gold should be moving into the market without delay. The upside potential is excellent. BofA/Merrill Lynch, Barclay's Capital and
many others forecasting gold will rise to $1,500 an ounce over the coming year
or two. That means there is excellent
potential in the market from these levels and those who have yet to get into
the market should do so for the profit potential that it offers, as well as for
protection of purchasing power and protection against inflation that gold
provides. Call Goldline at
1-877-341-2646 for assistance in getting started. You may also wish to ask for the free gold investor information
package. It contains a free DVD, a
newsletter and many other articles that will be of assistance to you in
arriving at a decision as to whether you wish to own or add to your gold
holdings. 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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