Daily Commentary

Average Gold Forecast $1,009 an Ounce, Silver $18.49

Gold started the day in positive territory, then slipped into the negative column, but quickly rebounded to the plus side.  Silver showed some weakness through the first half-hour of trading, down $.14.  Oil continues lower, down $.39 at $123.89 a barrel.  The dollar continues to rally, up 5 basis points at 73.29.  As I look at these markets as trading begins today we have a neutral performance.  With the euro slightly higher against the dollar, gold is generating some support.  At one point during the first half-hour of trading, we saw gold up as much as $4. 

The London Bullion Market Association published its survey of the twenty-four most prominent precious metal analysts.  Not surprisingly the consensus averages for all four precious metals have risen year on year, and for the most part quite sharply.  In fact, compared to last year where the analysts generally forecasted substantially lower prices than were actually achieved, the consensus forecast is almost $200 an ounce higher this year.  In addition to the forecast averages rising sharply, the forecasted highs have risen as well.  Over half of the analysts expect gold to be at or above $1,000 an ounce this year.  These analysts include some of the most prominent big bank analysts.  For example, Jeff Christian of the CPM Group forecasts a high of $1,060 this year.  Dave Davis of Credit Suisse Standard Securities forecast a high of $1,110.  Almost all of the analysts site a combination of severe economic problems in the financial system, geopolitical tensions, and declining supply of gold as being principal factors in their forecast.  Ross Norman of the Bullion Desk, who has been on of the most prominent and successful at making these predictions, is forecasting a high of $1,250 with an average price for the year of $976.  He is also forecasting silver to reach a high of $18.80 an ounce.  In fact, the average high forecasted for silver is $18.49 an ounce.  The average high forecasted for gold among all twenty-four of the analysts is $1,009 an ounce. 

Therefore, given these forecasts, it is reasonable to conclude there is significant upside potential in the gold market today.  If gold were to rally to $1,009 an ounce, as would be consistent with that average forecast, it would represent a 15% increase from today's levels.  It would also represent an overall increase for the year of more than 20%.  Silver also shows excellent upside potential. 

Therefore, investors should contact Goldline at once to begin diversifying into gold and silver for the profit potential that they offer and for the long-term purchasing power protection they offer.  We all insure our homes and our automobiles because we want the peace of mind that we are protected against a significant loss.  We should also protect our savings accounts against the significant loss from the deterioration of the purchasing power of money and rising inflation.   As Frank Barbera says in the free CD Goldline is giving away, gold and silver both provide insurance for the purchasing power of your money.  That is one of the most vital reasons to own a proper diversification into precious metals assets.

Investors should contact Goldline and 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 American Eagles, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars.  However, the Price Guarantee Program is not available with these assets. 

If you would like to take advantage of the Price Guarantee Program, which provides you with a two-week window of opportunity in which to re-price your order in the event of a correction, you must select assets with some collectible value such as Swiss 20 Francs, Double Eagles and Silver Dollars.  When you acquire 29 Swiss 20 Francs, you will receive the 30^th coin for free.  Investors may wish to consider several tubes of these coins to obtain several free Swiss 20 Franc gold coins.  Call Goldline at 1-800-827-4653 for further information.

To receive the free information package including the special booklet from the FDIC that helps you to understand whether your bank accounts are safe and enables you to be sure that your bank has the proper insurance to protect your deposits, call Goldline.  We also provide several other helpful articles.  There are also a number of other independent third party source articles that you will find extremely helpful and informative.  You will also receive the company brochure and a Coin Facts Risk Disclosure Booklet, which you should read carefully before you make an investment. 

Goldline will also send you a free CD of the special interview with analyst Frank Barbera if you ask for it.  This is a remarkable interview and I think everyone would benefit from listening to it.  Call Goldline now to receive your free information package at 1-800-827-4653.

^{You should carefully read the client Account Agreement and the Risk Disclosure information. These explain important things you need to know before you invest in precious metals, such as: past performance does not guarantee future results. Transaction costs are generally 5% to 10% 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, preferably five- to ten-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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