Broker Richard Ross: “Very Bullish” on Gold

Release Date: 
Friday, March 21, 2014

Gold and Silver Prices

Gold and silver prices fell this week following statements from Federal Reserve Chairman Janet Yellen suggesting the Fed may raise interest rates sooner than markets expected. “The market place is still digesting the statement of the latest U.S. Federal Reserve Open Market Committee (FOMC) meeting that ended Wednesday afternoon, and Fed Chair Janet Yellen’s press conference afterward. As expected, the FOMC will continue on its ‘tapering’ program, whereby monthly bond purchases are whittled down by $10 billion a month. What rattled some markets, including gold, was an indication the Fed could begin to raise U.S. interest rates sooner than many expect—sometime in 2015. Yellen is perceived to be fully in the dovish camp on monetary policy, and several markets were caught off guard by the FOMC statement and her remarks that were deemed less-than-fully-dovish.” (“Gold Solidly Lower, At 3-Week Low, As Bulls Losing Technical Control,” Kitco News, 3/20/14.)

Gold closed the week down $47.30, at $1,335.70. Silver prices closed at $20.38, finishing the week down $1.18.

Broker Richard Ross: “Very Bullish” on Gold

New York based brokerage firm Auerbach Grayson’s Richard Ross told Yahoo Finance that he expects gold prices to continue to rally.

“‘In fact, it (gold’s recent rise) is sustainable,’ says Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson. ‘We've been very bullish here on the US, but we're seeing things are getting a little dicey out there from a global standpoint. Emerging markets are on the ropes right now. You're seeing what's going on in Russia. Even in Europe, the momentum is slowing. All of that continues to favor gold.’”

“Ross notes that gold has broken above its 200-day moving average and is headed towards resistance not far above its Monday settlement price of $1,392.60 per ounce. ‘I think the next stop if $1,420,’ says Ross, who sees the yellow metal potentially making its way to $1,560 per ounce.” (“Why gold is setting up for a vicious rally,” Yahoo Finance, 3/18/14.)

Gartman Remains “Solid Bull” on Gold

Newsletter publisher and investor Dennis Gartman told CNBC the Russian-Ukraine crisis may be a significant driver of gold prices.

“According to Gartman…only one thing matters most to gold bugs now: Vladimir Putin. The greater the tension in Ukraine, the higher gold prices should go, Gartman said. As those pressures ease, gold should fall. ‘Any incursion by the Russians into mainland Ukraine, while unlikely, but remotely possible, would send gold soaring,’ Gartman said. Of course, it's been quite the year for bullion. Gold is up 13.3 percent year-to-date, and if it can hold its gains, it would be its best first-quarter performance since 1985. Gold is also on track for its best overall quarter since the third quarter of 2007.”

“Still, in the long term Gartman remains a solid bull, noting that sentiment and the technical setup are still very constructive for gold. ‘The chart is going from the lower left to the upper right,’ said Gartman. ‘And in my view, that should continue for some time, and you should buy.’” (“Gartman: This could send gold prices soaring,” CNBC, 3/18/14.)

Perth Economist Bullish on Gold

“The gold price could reach US $1400 by the end of the month according to a Perth economist. Chief economist for ABC Bullion Jordan Eliseo said the unrest in the Ukraine was pushing the price of gold up.”

“‘If we break US $1430 I think the gold price will continue to appreciate,’ Mr. Eliseo said.”

“‘Gold is always seen as the ultimate safe haven, so when there is instability in the political world, we see the gold price increase,’ Mr. Eliseo said. ‘When people get nervous about other investments they turn to the more traditional investment of gold.’” (“Perth economist predicts gold prices will keep on shining,” WA Today, 3/21/14.)

Goldline’s Express IRA℠ Program

Many Goldline clients choose to include precious metals as part of their retirement planning especially during times of economic crisis and uncertainty.* Goldline’s Express IRA℠ allows clients to acquire precious metals on their schedule; they no longer have to wait for your self-directed IRA to be funded before getting started.

Goldline's Express IRA℠ not only provides clients with the ability to diversify their IRA on an expedited basis, clients can also qualify for Goldline's ground-breaking Two-Way Price Guarantee Program℠ when they acquire $10,000 or more of our exclusive bullion coins. When an Express IRA purchase qualifies for Goldline's Two-Way Price Guarantee Program℠, clients are protected on short-term upside and downside market movement: they can either call to reprice their coins if the selling price falls (up to a maximum of 28 days depending on the size of the purchase) or, if the selling price of the coins increase during the qualifying period, clients can call Goldline to acquire additional coins at the original selling price.

Goldline provides a wrap-up of the week's precious metals news along with important commentary on the American Advisor Week in Review audio program. Listen to the show below:

*Federal IRA tax laws are complex and may change from year to year. Goldline believes it is appropriate to have 5%-20% of retirement portfolio allocated to precious metals. Other individuals and institutions may recommend different percentages. As with any investment, you should consult your tax advisor before making a decision regarding precious metals IRA investments.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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