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Gold Falls On Moody’s Downgrade of Spanish Regions

Release Date: 
Tuesday, October 23, 2012

Gold prices fell on the New York Spot Market in morning trading after Moody’s Investors Services downgraded five Spanish regions. The downgrade boosted the dollar with the U.S. Dollar Index climbing to a one-week high. “Spain continues to drive the direction of the market, and people are moving towards the dollar and staying away from riskier assets,” the president of Infinity Trading Corp. told Bloomberg.

As of 9:10 a.m. PT, gold was trading at $1709, down $21.50. Silver also fell to $31.93, down $0.62.

John Embry, chief investment strategist at Sprott Asset Management, recently explained why he continues to be bullish on gold: “For some time now we have been seeing relentless demand for physical gold, and that only makes sense. The world is awash in US dollars and most people recognize there is no solution to the US financial problems. I think physical demand will eventually decide the match and it’s going to lead to much higher prices… As the US tries to deal with the fiscal cliff, that will be very supportive of higher gold prices.”

“You have to remember that anybody who thinks gold isn’t a good investment here is voting for currency and the US dollar, and to me that’s almost an impossible argument to make.”

Billionaire investor Frank Giustra shares many of these views. "Everyone is frozen with fear. Everyone is in cash… It's the beginning of the end for the US dollar. I don't want to sound apocalyptic, but how else does this end? You have to be on the right side of this trade… I'm a fan of all hard assets, but particularly gold. It's the largest part of my portfolio and it will continue to be until this cycle is over."

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 Falls as Strengthening Dollar Curbs Investor Demand,” Bloomberg, October 23, 2012;

“Embry - Relentless Demand Setting Gold Up For A Big Move,” KingWorldNews, October 22, 2012;

“Billionaire Frank Giustra: Gold will be the final bubble,”, October 18, 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.

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