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Gold Market Remains Robust

Release Date: 
Friday, November 29, 2013

Gold and Silver Prices

Gold prices tumbled on Monday due to several factors including the preliminary agreement with Iran over its nuclear proliferation and the prospect of the Fed tapering its quantitative easing program. Gold closed the week at $1,253.00, up $8.30. Silver prices rose $0.20, closing at $20.13.

Gold Market Remains Robust: Lombardi

Financial commentator Michael Lombardi wrote that 2013 may prove to be a great time to acquire gold. “Given the recent further weakness in the price of gold bullion, should investors be running for the exit doors? Some well-known ‘gold bugs’ have recently turned bearish on the precious metal. But I’m on the opposite side of the spectrum; I see the pullback in gold prices as an opportunity of a lifetime for contrarian investors…”

“Since 2001, the precious metal’s price has marched higher. Note there have been many pullbacks along the way, but in all cases, gold bullion prices recovered and moved higher after their pullback. And I believe we will see gold prices recover again from their current price correction… From a fundamental point of view, demand for the precious metal remains robust. Many central banks have become net buyers of gold bullion over the last couple of years, and consumer buying in gold is very strong… My wager is that in the years ahead, we will look back at 2013 and say, “What a great year that was to buy gold-related investments.” (“Are Weak Gold Prices an Opportunity of a Lifetime Investors?” Market Oracle, 11/27/13.)

Ron Paul on Fed, Gold

Former U.S. congressman and presidential candidate Ron Paul discussed the Federal Reserve’s policies to revive the U.S. economy and the Fed’s likely direction under Fed Chair nominee Janet Yellen during this week’s Metals and Minerals Conference. 

“Paul explained that although the Fed has managed to keep interest rates artificially low, it has done nothing to help build the economy and has only created an asset bubble that continues to grow. ‘We have not had a correction and are determined not to allow the markets to correct the errors of the market officials…We should have allowed the liquidation of all debt and let the bankruptcies occur, pick up the good pieces and people would go back to growth again. It would have been all over in a year…’”

Dr. Paul does not see better times once Ms. Yellen takes the Fed’s reins. “She is a very aggressive inflator. She really believes in quantitative easing and that is the only thing they know... I think she is very dangerous. I think she will be dangerous to the U.S. dollar.”

“Looking at the gold market, Paul said that people should not be concentrating on the price of the yellow metal so much but instead they should be asking themselves if they have enough.  ‘I am more for making sure that I’m prepared for really bad times,’ he said. ‘Do I have enough ounces to take care of my needs or my family’s?’ Paul added that he sees the current correction in gold prices as a good buying opportunity and it’s only a matter of time before prices start to move higher.  ‘They cannot print this kind of money and think that it will never be discounted by the dollar price of gold and I think we are fast approaching that time where it will turn around.’” (“Ron Paul: Yellen Dangerous For The Economy,” Forbes, 11/26/13)

Russell, Cramer: Gold Should  Be Part of Your Portfolio

Veteran investor, newsletter writer and publisher of the Dow Theory Letters, Richard Russell, told his readers why they needed to own gold: “Never buy gold for a profit, gold is a measure of wealth. Count your gold holdings in the number of ounces, not the current worth in dollars. You don’t price the home you live in every day, or with each passing week. Nor should you price your gold holdings in dollars with each passing day. Gold is a timeless wealth asset; an asset that will have a value with the passing of time…In investing, nothing is permanent except gold. But remember, do not buy gold with the idea of making a profit. Buy gold because it is pure wealth, and may be the last man standing.”   (“Richard’s Remarks,” Dow Theory Letters, 11/25/13.)

Financial expert and host of CNBC’s Mad Money, Jim Cramer reaffirmed his view that gold was a critical component of a balanced portfolio: “…I still think it's worth having some gold exposure in your portfolio…if only as a kind of insurance against inflation and economic catastrophe."  (Cramer: Golden opportunity in gold miner?” CNBC, 11/25/13)

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 a 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. Click here to listen.

*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.

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.

To receive free information package on gold and precious metals investing, call Goldline at 1-800-963-9798.