Daily Commentary

Oil Hits $125.50 a Barrel

Gold and silver began the day higher but experienced some end of the week profit taking.  Gold was up in reaction to a weaker dollar and higher oil prices.  Oil hit a new all time record high today, rising $1.81 to $125.50 a barrel.  Oil reached $126.20 a barrel at the high.  The dollar is down 30 basis points at 73.18.  One analyst told the Dow Jones Wire Service, "While gold has been lagging oil in ratio terms, the yellow metal will push back towards it's $1,000 level over the next two or three weeks on rising crude prices."  Today's profit taking was prompted by resistance at $895 and a lower than expected trade deficit.

The March trade deficit improved considerably.  It had been expected to be $61.5 billion and came in at $58 billion.  That is clearly the result of the weaker dollar.  Exports rise when the dollar becomes weaker as U.S. goods become cheaper for the rest of the world to buy.  Given the enormous surge in oil prices and a weakening trend for the dollar, it would appear gold and silver are a tremendous buying opportunity at today's levels. 

Investors should be considering acquiring gold and silver on every dip, so long as gold remains in this solid and well-defined rising trend.  The fact that gold is experiencing an excellent high-level consolidation during the corrective process, and the fact that it has been climbing a virtual wall of worry in stair-step fashion, are all further factors that contribute to the bullish outlook for gold.

There are continuing concerns about the banking system.  Many are now talking about the huge amount of credit default swaps and the fact that AIG has been taking some very big losses as a result of some of the credit default swap transactions.  Also, Citibank reported today that they plan to liquidate more than $400 billion in assets over the next two to three years.  Essentially, that means they have some losing assets that they need to write down on their books.  So far they have recorded about $40 billion in write-downs during the past three quarters.  This is simply indicative of the many problems that banks and other financial systems will be experiencing over the next few years.

All of these factors are excellent reasons to acquire gold and silver assets.  Call Goldline today.  Ask them to explain the features, benefits and cost structure of the various gold and silver investments that are available to you.  Select those that best meet your own personal and individual investing needs and objectives.  Investors looking for low transaction costs may wish to consider bullion assets such as Krugerrands, Canadian Maple Leafs, American Eagles, Silver Bags or Silver Bars.  Those assets do not have the availability of Goldline's Price Guarantee Program.  Investors who would like to take advantage of Goldline's Price Guarantee program, which provides you a two-week window of opportunity in which to re-price your order in the event of a correction, will need to consider assets that have collectible value, like Swiss 20 Francs, Double Eagles and Silver Dollars and other similar assets. When you acquire 29 Swiss 20 Francs, you receive the additional benefit of a free Swiss 20 Franc gold coin.  Goldline still has available some of the Proof American Eagle Silver Dollars.  These coins were made by the U.S. Mint for the collector market.  They are very popular in IRA accounts.  The coins normally cost $54.95, but are available while they last at $44 each.  Call Goldline today to get started with your gold and silver investments and ask about the details of these special offers at 1-800-827-4653.

Call Goldline to receive the free information package, which includes the excellent articles on oil, rising food costs, inflation pressures and the fact that banks are freezing homeowners' equity lines of credit.  You will also receive a company brochure, which explains the features and benefits of investing in gold and silver assets.  Be sure you also read the Coin Facts Risk Disclosure Booklet, which contains important facts you should know before you make an investment.  Call Goldline now to receive your free information package at 1-800-827-4653.

Investors should be mindful that past performance does not guarantee future results. Transaction costs are generally 5% to 7% on bullion and 30% to 35% 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.

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