Gold Trading Within $870 to $900 Range
by Joe Battaglia
Posted: June 11, 2008
Gold is trading up
$8 early this morning, with silver up $.24.
Oil has rebounded, up $2.87 at $134.18.
The dollar is slightly weaker down 27 basis points at 73.43 and the
equity market is showing some stress, down 94.69 at 12,195. One analyst commented that the recent
correction that we've seen in the gold market might have been due to government
intervention to support the dollar. The
analyst told the Dow Jones Wire Service: "Gold was sold by the London gold pool
to support the dollar in the 1960's".
That is the same information that I provided to my listeners over the
past several weeks. However, it is to
be noted that intervention can never last for very long. There is a finite amount that central banks
can do with regard to intervening to alter currency markets or precious metals
markets.
For the moment gold
seems to be trading within a range of $870 to $900.
One thing is clear,
there are expectations for higher inflation.
Michael Jansen the analyst for JP Morgan said: "Precious metals are
recovering in line with the stabilization in the FX markets. Also, many analysts and traders still
believe that gold and other precious metals should draw support in an
inflationary environment such as the one we are in now." Jansen has been forecasting gold to rise
above $1,000 an ounce by the end of the year.
I think a weak
equity market also is supportive of gold and silver. Gold and silver tend to be the "anti-dollar" currency. They are well supported when the dollar is
weak. They're also the "anti-equity"
investment. They tend to generally move
in the opposite direction of the equity market. Gold and silver have both substantially outperformed all of the
major industrial averages. Gold clearly
remains in a solid and positive bull market.
It is going through its period of correction and consolidation during
the summer months, as it often does.
However, the best time of the year for the precious metals tends to be
in the autumn. Therefore, we see many
analysts including Merrill Lynch and others forecasting that gold will break
out above $1,000 an ounce towards the end of September. At these levels and with oil trading near record
high levels, it would seem fairly clear that gold and silver present an
excellent buying opportunity.
One of the tools
that investors can utilize to make their investing more secure is to take
advantage of Goldline's Price Guarantee Program. This program is available with assets like Swiss 20 Francs. Investors should get started today with
precious metals by calling Goldline at 1-800-827-4653.
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 30th
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.
Back to Daily Commentary
