Gold and Silver On a Breakout
by Joe Battaglia
Posted: July 1, 2008
Gold is up $11 in
the first half-hour of trading after having reached a high of $943.60 in the
August contract. It is looking like it
is going to make an attempt at taking out the $950 resistance level. Silver is up $.43 in early trading, which is
about $.08 off its high. Oil is up $3
at $143 a barrel. The U.S. dollar is
down 22 basis points at 72.24. Equities
are weak, but rebounding. The Dow was
as low as 11,233, but has bounced back about 100 points, but still holding a
loss of 28 points at 11,324. The
transportation index is down 103 points at 4,845.
Analysts are saying
the Dow is in a "bear" market, falling more than 20% from its October
high. However, we have yet to see a
confirmation by the transportation index.
If the transports fall another 600 points, they will be giving an all
out Dow theory sell signal.
The rebound in
precious metals and the weakness in the dollar are likely due to the
expectation the ECB will raise rates ¼% on Thursday. This is a situation that could be negative for the dollar and
bullish for gold. Moreover, there is a
considerable amount of talk that Israel will attack Iran before the end of the
year. When you have Bloomberg and CNBC
talking about rumors such as this, there is probably a pretty good chance that
will occur. If it does, all bets on oil
may be off. Oil could easily get to
$200 a barrel. Moreover, the
geopolitical worries would escalate dramatically and give rise to enormous safe
haven demand for gold. An attack on
Iran could easily produce gold at $1,200 an ounce or more. Merrill Lynch said today that gold will rise
to $1,000 by the end of September. By
gold now!
Looking at the
performance of the equity market, it is prophetic that Royal Bank of Scotland,
Barclay's Bank, the BIS and others have forecast a substantial decline, if not
a crash in the stock market. We have
been passing this warning on for weeks.
If you have not gotten the free copies of the reports quoting Royal Bank
of Scotland, Barclay's and now Fortis Bank, which has joined with Goldman Sachs
and others warning investors to be prepared for a stock market crash, you
should call Goldline immediately at 1-800-827-4653.
Investors should
also be acquiring gold and silver assets as protection from this kind of
situation. The world has become a very
dangerous place for investors. Most
investors have stock funds in their 401(k) plans and IRA accounts. They simply do not know for the most part
they can move those funds into money market funds or other safe assets to avoid
the risk of a crash. They also are
totally unaware that gold is a "safe haven" asset that can provide tremendous
protection from an inflationary environment and a collapsing dollar. Those who are aware of these factors are
able to protect themselves and to benefit from the conditions that we
experience now.
Just yesterday, I
included a free information article wherein Citigroup is calling for gold to rally
to $1,000 in the next few months and says that it could perhaps double or
triple over the next few years. This is
an opportunity for investors that should not be overlooked. Call Goldline today for the free information
package 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 four 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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