Daily Commentary

Corrective Process Continues

by Joe Battaglia
Posted: December 15, 2005 Gold rallied to a high of $510.80 on the February contract, while silver reached $8.64. Both eased back off of those levels on profit taking; however, gold dipped into slightly negative territory, while silver held onto a 12 cent gain. Platinum and palladium also were softer, as the corrective process continues. After this period of correction and consolidation, gold and silver both should make a much stronger move to the upside. Having held at support yesterday and likely to hold at support in the $505-507 range today, gold should move slightly higher over the remainder of the year, and then in the first 2 weeks of January, has a very good potential to rally up to the $540 level. Oil is down 24 cents at $60.61 a barrel, and the dollar is firmer, up 12 cents at 89.95.

The Dow Jones Wire Service said today that, on a technical basis, "Pushing above those two longer term resistance levels ($502.30 and $514) suggests there could be even bigger price gains in the precious yellow metal in the coming weeks and months. There has been no serious longer term technical damage produced by this week's big sell-off in the gold futures market." The November Consumer Price Index posted the biggest drop in more than 56 years. While the core index gained .2%, the overall CPI was down .6% as a result of a decline of 8% in energy prices. That was a huge drop in energy, in fact a record. Nevertheless, inflation continues to be a significant issue for investors on a long term basis. That's one of the key reasons that investors continue to add gold to their holdings, to protect against the loss of purchasing power of the dollar, and rising inflation pressures.

After the significant correction that we have had over the past several days, this is an outstanding opportunity to acquire gold for long term investors. In my view and that of many analysts, gold should be resuming its uptrend promptly. Therefore, take advantage of the opportunity to buy this dip without any delay. Goldline offers all forms of gold and silver investments to meet your personal needs. Whether you choose common bullion type American Eagle coins, or rare $20 gold pieces, or Swiss 20 francs, gold should be in your portfolio. Take advantage of Goldline's special offer on the Swiss 20 francs. Acquire 29 of them and the 30th is free. I also believe that all investors should be owning some silver at these levels. Silver is showing excellent relative strength, and I think is in very short supply and headed substantially higher. Call 1-877-341-2646 to acquire gold and silver today. If you would like to receive the free information package, including some excellent articles forecasting much higher gold prices, along with a special Citibank report which is forecasting that gold will reach $600 an ounce next year, and perhaps as high as $700 an ounce, call now for that free information. 1-877-341-2646.

Investors should be mindful that past performance does not guarantee future results. Transaction costs are generally 5% on bullion and 30% 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 investment, suitable for 5% to 10% of the average portfolio. Please see Goldline's Risk and Disclosure Statement for further details.

 

^{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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