Gold and Silver Remain in Tight Trading Range
by Joe Battaglia
Posted: June 13, 2008
The consumer price
index rose 0.649%, which would annualize out to 7.79%. While that was very high it obviously isn't
high enough, as the government modified the energy numbers to indicate lower
energy price inflation than really occurred.
However, the core rate was only up 0.2%, which is only slightly higher
than the Fed's target. I suspect this
will provide the Fed some latitude to stay on hold with regard to interest
rates. However, the markets predict the
Fed will raise rates ¼% at the September meeting and another ¼% in
October. If they do, it will probably
have a negative impact on the banks, the economy and on the equity
markets. It would also create a
difficult environment for precious metals.
The metals seem to
be holding their own with gold trading down about $4 and silver unchanged. The dollar is higher, up 32 basis points at
74.18 and oil is down $3 at $133.74.
The OPEC members are indicating they believe oil demand will decrease
next year. There is also going to be a
special meeting between oil producers and consumers where it is expected that
Saudi Arabia will indicate they will increase production to meet present
demand.
In spite of the
conflicting data and confusion that exists in the markets, particularly due to
the fact that the banks and the housing problems remain severe, gold and silver
remain in a relatively tight trading range.
That is actually a very positive performance. When you consider the fact that oil is down and the dollar is
higher, one would think gold would have corrected more than it has. Thus, it is showing excellent strength
because there is solid demand for physical gold and buyers continue to move
back into the market to provide support.
Given these
factors, it is still the expectation that gold and silver are excellent buying
opportunities in the current range.
With gold holding nicely above it's 200 day moving average and the
rising trend remaining intact, I believe that gold continues to present a
buying opportunity during this period of consolidation. It is likely to be over within a month or
two and investors can achieve some significant degree of price protection by
utilizing Goldline's Price Guarantee Program.
With that program, you will have a designated period of time during
which you do not have to be concerned about price declines, because you can
lock in a lower price and obtain more gold or silver for your initial
investment. Call Goldline today to get
started 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 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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