Spot Gold Set To Push Towards $950
by Joe Battaglia
Posted: June 30, 2008
Precious metals
have seen a little bit of profit taking this morning, as silver is now trading
unchanged after reaching a high of $17.88 in the August contract. Gold is down $.40 after reaching a high of
$937.70. Today is the last trading day
of the month of June. Therefore, we
could be seeing some late first half-profit taking. Oil is up sharply again today.
It hit a high of $143.67. It is
now up $2.20 at $142.31. The dollar is
trading about unchanged, down 3 basis points at 72.33 and the Dow Industrials
are down 30 points.
Analysts are now
widely expecting gold to trade up towards $950 an ounce. Dow Jones Wire Service reported JP Morgan
analyst Michael Jansen said: "Spot gold looks set to push towards $950 a troy
ounce and spot silver to $18 an ounce."
He pointed out that gold has reached two to three month range highs in
non-dollar denominations. This means
that gold is up in terms of all currencies.
Another way of saying that is to point out that all currencies have been
falling against gold. Moreover,
analysts said that gold is expected to gain further this week. The dollar should remain under pressure and
crude oil prices should continue to increase.
Thursday the ECB
will meet. They are widely expected to
raise rates ¼%. If they do so, gold
should gain further strength to the upside.
Inflation pressures are as bad or worse than the U.S. and other
countries. In Beijing, China minimum
salaries for city workers are being raised 10%. This is to offset the negative impacts of higher inflation. Their official inflation rate was reported
at 7.7% in May.
Just a few months
ago, analysts were saying they believe the credit crisis was over. Now, they fully recognize that it is far
from over and may in fact worsen. One
only has to take a look at the stock value of some of the most prominent banking
institutions to see that they have severe problems. Some may actually fail.
In this
environment, investors turn towards gold as a safe haven asset, an asset that
protects purchasing power, an asset that protects against rising inflation, and
an asset that is outperforming all other assets by a wide margin. If you have not yet acquired gold or if you
do not have enough gold to properly protect your portfolio, you should consider
acquiring it today. The near term
outlook for gold looks quite promising and certainly over the long haul many
analysts think gold will be thousands of dollars an ounce. Today Citygroup forecast $1,000 by year end
and said gold could double or triple from today's levels. This is your opportunity to get in at
bargain basement prices. Call Goldline
at 1-800-827-4653. Be sure you ask for
and receive the Barbera CD interview, along with the brand new Barclay's
article warning of a financial storm and the RBS article warning of a market
crash. We will also give you the
article written by Fed Governor Fisher saying that conditions down the road may
be even worse than they are now. Be
sure you read the Bloomberg article forecasting gold to hit $5,000 an ounce.
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
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for further information.
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at 1-800-827-4653. Goldline also
provides several other helpful articles.
There are a number of other independent third party source articles that
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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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