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Gold Consolidates On Profit Taking

Release Date: 
Monday, October 15, 2012

Gold prices fell on the New York Spot Market in morning trading on profit taking after U.S. consumer sentiment reached a five month high and jobless claims fell more than expected. “The precious metal was hurt by heavy liquidation in Asian trade, and by upbeat U.S. consumer confidence data on Friday that tempered expectations over the extent of monetary easing measures from the Federal Reserve,” wrote CNBC. Uncertainty over Spain’s bailout and concerns the global economy is weakening further affected gold prices.

As of 8:10 a.m. PT, gold was trading at $1734.60, down $19.70. Silver also fell to $32.89, a drop off $0.69.

Despite the correction, Reuters reports: “Hedge funds and money managers have raised their gold futures positions to their most bullish in nearly 14 months, a move traders tied to bullion's appeal as an inflation hedge amid hopes that the Federal Reserve and major central banks will keep pumping money to stimulate growth.”

Recently Swiss bank UBS increased its average 2013 price target for gold to $1,900 per ounce. “The open-ended nature of QE … promises longevity for a higher gold trade and the quantitative easing and strength in gold also supports silver,” the bank noted.

Credit Suisse also raised its gold and silver forecasts for 2013. The average gold price in 2013 may rise to $1,840 per ounce, the bank said, a 7% increase from its prior forecast. Analysts raised the bank’s average 2013 price target for silver by 13% to $33.10 per ounce.

If you have questions or would like to acquire gold or silver, Goldline’s Account Executives are here to help. Call us today at 866-867-4466.

Goldline's Extended PGP

For those investors who qualified for Goldline's Price Guarantee Program (PGP) this week, the drop in gold and silver prices provides the opportunity to receive additional gold or silver at no additional cost. Goldline's PGP allows clients who purchase over $10,000 in qualified gold and silver coins to call Goldline if the price of their coins falls within 7 days of purchase and reprice their order at the lower price*. For a limited time, clients may receive an extended PGP, up to 28 days, for certain order sizes. Ask a Goldline Account Executive for the full details.

Goldline’s PGP is just part of the Goldline Difference. To learn more about the benefits of working with Goldline, an industry leader helping people buy gold and silver for more than fifty years, click here. Or call our Account Executives at 866-867-4466.

*Please review our Account Agreement for additional conditions.

(Sources: “Gold Slides to Two Week Lows on Spain Jitters,” CNBC, October 15, 2012; “Gold falls on strong dollar; silver declines to one-month low” The Economic Times, October 15, 2012; “Gold falls to 2-1/2-week low; Spain uncertainty, US data weigh” Reuters, October 15, 2012; “UBS raises gold, silver, copper forecasts,” Mineweb, October 12, 2012; “Credit Suisse lifts '13 gold view 7% to $1,840-oz.,” Marketwatch, October 12, 2012.)

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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.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. 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 investment portfolio though others may recommend a different percentage.

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