Daily Commentary

Utilize Goldline's Price Guarantee Program

The dollar strengthened incredibly today, jumping another 68 basis points to 73.89.  Oil fell $3.61 in early trading to $132.75.  Both of those factors caused gold and silver to fall sharply.  Gold is down $18 and silver $.46.  It would be reasonable to assume that gold may test $850.  There is also a possibility to slip further before gold and silver resume their up trends.  This is the time of year when gold often makes its lows for the year and presents the best buying opportunity.  This week's Barron's magazine said the following: "Then there's the oil/gold ratio, which hasn't been this high since the summer of 2005.  That was an excellent moment to buy gold, incidentally, and one when oil prices stalled for a time.  And a decent reason one might care to consider how oil trades in relation to gold is that, to a significant degree, both commodities trade like a currency called the "anti-dollar."" 

I think the big question for investors to consider is whether the bull market in gold and silver have ended.  That is highly unlikely.  They remain above their long-term moving averages.  They remain in a pronounced rising trend.  There is nothing to suggest the bull market has ended.  This is another typical correction in a long-term bull market.

We are seeing a rebound in the equity market this morning.  One of the reasons the dollar strengthened this morning is that Fed Governor Polsser, known as an "inflation hawk", said the Fed needs to act preemptively to fight inflation pressures.  This was taken to mean that he anticipates the Fed will raise rates sooner, rather than later.  That may well occur; however, it is more than likely to push the economy deeper into a recession.  CNBC Television referred to his comments as a "diatribe" against inflationary pressures.  The fact that he said rates will have to rise and it's only a question of when, had a significant psychological impact on currency traders. 

I also think there is probably some intervention going on in both the currency and gold markets.  These markets have become extremely volatile.  Retail sales had been expected to rise 0.5% and rose a full 1% in May.  Many interpret that as providing sufficient economic strength to give the Fed cover in raising rates.  However, those who have that view are probably not considering the fact that a rise in retail sales is mostly due to higher energy prices.  Contrary to the retail sales data, the number of U.S. workers filing new claims for unemployment benefits jumped by an unexpectedly large 25,000 last week. 

While the dollar could strengthen further over the near term, it is not likely to reverse its longer term down trend.  The housing problems seem to be growing worse, more rapidly.  The Lehman Brother's situation has been a disaster with the company on the verge of filing for Chapter 11 bankruptcy protection.  In addition, you have a weak labor market, a very weak housing market, increasing mortgage defaults and foreclosures, and further losses ahead for the major banking institutions.  None of this is suggestive of a stronger dollar.  In addition, you have the government going deeper in debt day by day.  As interest rates go up, the interest cost on the $9.5 trillion in debt goes up.  This is another negative for the dollar.

This is one of those times when the bull is trying to shake out the weakest players in the precious metal market.  It is important that investors hang in there and if a person were interested in acquiring gold and silver, now is the time to do it.  Those who have utilized Goldline's Price Guarantee Program have benefited tremendously by this correction.  Investors who still have time left on their program may wish to consider re-pricing their transactions before this time limit expires.  Call Goldline today to either begin your precious metal investment portfolio or to add to it 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 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 articles on the dollar, the economy and gold call Goldline at 1-800-827-4653.  Goldline also provides several other helpful articles.  There are 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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