The dollar is
stronger this morning, up 18 basis points and all other markets are in negative
territory. The Dow is down 137 points,
oil is down $1.47, but gold and silver are pretty steady holding in there with
gold at $1,135.60 and silver at $18.32 an ounce. Gold and silver are showing exceptional strength given the fact
that the dollar is rallying and they've had such enormous moves on the
upside. In fact, it would not be
surprising to see them rally back into positive territory by the end of the day
or tomorrow. Gold could see a brief
period of consolidation between $1,130 and $1,150. However, most analysts think that any correction would be very
short lived.
The Wall Street
Journal reported yesterday: "Consolidation in these types of trends are
normally very shallow and quick, and it won't be long before the next up side
targets at $1,200 and $1,230 are met."
In addition, Mark Farber said yesterday that gold at this level is a
better buy than it was at $300 an ounce in 2001. He said: "I wouldn't be surprised if, in another eight years – in
2017 – the yellow metal fetches $5,000 an ounce or more, which, by my math,
would make it a better buy. ...' After
almost a decade of trillion dollar deficits, that almost seems like a slam dunk
when the measuring stick is the U.S. dollar."
In addition, famous
investor John Paulsen who scored $20 billion worth of profits between 2007 and
early 2009, is now opening a gold fund.
As the Wall Street Journal said he is "a major investor is placing a big
new bet on gold." The fund will begin
on January 1st. Paulsen
himself is putting $250 million into the fund.
According to the Wall Street Journal article which appeared on the Dow
Jones Wire Service: "At Tuesdays investor meeting, Paulsen argued that the bull
run was only beginning for gold; he said he was starting the new fund in part
to get himself more personal exposure to gold."
These are sophisticated
investors who understand the markets and understand the underlying
dynamics. While they are not
infallible, they are generally likely to be correct in their market calls. Follow their lead and you have a better
chance of being successful than if you followed the "hot tips" of some retail
broker or so called investment advisor.
Investors should consider having their portfolios diversified with gold
for the reasons I sited yesterday namely: diversification, wealth protection,
an inflation hedge, and an independent profit opportunity with its own upside
momentum. Call Goldline today at
1-877-341-2646 to either begin your gold diversification or to add to your
holdings, if that seems appropriate.
In another piece of
very important news that should cause investors to consider owning gold, the
Central Bank of Russia is buying 30 metric tons of gold from the state precious
metal and stones depository. The sale
should be finalized before the end of this year. Moreover, the price that will be paid will be the market
price. All of this is extremely bullish
for gold, as we see major nations accumulating large amounts of gold for their
central bank reserves. They are using
gold as a replacement for the dollar.
This further suggests a longer-term down trend for the dollar and a
longer-term up trend for gold.
In economic news,
some indicators of economic activity suggest further growth in the economy
ahead. The Fed's Philadelphia
Manufacturing Activity Index rose to 16.7 in November from 11.5 in October. This is a positive statistic. Moreover, the leading index of economic
activity also rose 0.3% in October. On
the employment front, the country still lost 502,000 jobs in the reporting
week, although this is on somewhat of an improving trend. Yesterday, President Obama said that if the
country doesn't get control of the debt and deficits that there will be a
double-dip recession. That seemed to be
a statement inclined to appease the Chinese rather than an appeal to the people
of this country to restrain spending.
All of these
developments, whether on the economic front or on the technical front are
supportive of rising gold. To learn
more about some of the reasons why investors are accumulating gold and central
banks are diversifying out of dollars and into gold, call Goldline at
1-877-341-2646 and ask for the free information package. You will learn a great deal about the
dollar, gold and investing and also receive a free DVD, a newsletter and other
important information that you should carefully read before making an
investment. Call Goldline 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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