Correct Conditions in Place
by Joe Battaglia
Posted: July 29, 2005
Gold is up again today, in spite of the fact that the dollar is only down 7 basis points to 89.27. Some believe that the dollar's rally over the past several months has fulfilled its potential. The Chicago Purchasing Managers Index rose to 63.5 in July from 53.6 in June. That suggests a significant improvement in the manufacturing sector. That is a very positive development for the economy; however, it also implies higher inflation ahead. In addition, the fact that the euro is continuing to gain ground against the dollar, reaching a high of $1.2145 in early trade, is also supportive of the gold market. There is also the expectation of significantly increased demand for gold in India, following the monsoon season. Moreover, Forbes magazine ran an outstanding article expressing their opinion that China is likely to buy enormous amounts of gold with its excess dollar reserves. In the view of the Forbes analyst, this is the only reasonable alternative that may be available to them.
The Gross Domestic Product numbers for the second quarter showed a slowdown in the economy. GDP rose at 3.2% vs. 3.8% in the first quarter. Clearly, the correct conditions appear to be in place for gold to continue to advance nicely. Today gold broke out above the $428 resistance level. This opens the way to a move into the $440s. Investors should not delay acquiring gold. Procrastination will simply cost future profits. Take advantage of one of Goldline's special offers. Acquire 10 Swiss 20 Franc gold coins at only $125 each and receive free shipping. Acquire 29 and receive the 30th free. Silver is also an outstanding buy at these levels. Acquire $2000 worth of any numismatic silver items and receive a free Proof American Eagle silver dollar worth $50. Call now 1-877-341-2646. We are also providing a free information package that includes excellent articles, including an article in which Pierre Lassonde forecasts that gold will not fall below $420 an ounce, and that it has potential up to $525 an ounce this year. Moreover, there is an outstanding article on inflation written by the manager of a large mutual fund that everyone should read. Call 1-877-341-2646.
You should carefully read the client Account Agreement and the Risk Disclosure information.
These explain important things you need to know before you invest in precious metals, such as:
past performance does not guarantee future results. Transaction costs are generally 5% to 10% on
bullion and 30% to 35% on coins. This is also referred to as the spread, or the difference
between the buy price and the sell price. The market must go up enough to overcome this spread
before an actual profit is achieved. All markets go up and down. Coins are a long-term, three- to
five-year, preferably five- to ten-year investment, suitable for 5% to 10% of the average
portfolio. Please see Goldline's Risk and Disclosure Statement for further details.
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