Safe Haven Demand For Gold Continues To Grow
by Joe Battaglia
Posted: July 3, 2008
The September
contract for gold reached a high of $959.60 where profit taking set in causing
the market to pull back for a $10 loss in early trading. Silver reached a high of $18.59 and then
pulled back to a $.14 loss. Most of the
correction in the gold and silver markets were due to a correction in the
dollar, which rose 45 basis points to 72.48.
Oil also rose aggressively overnight reaching $145.85 a barrel, but then
pulled back to a $.70 gain at $144.27.
With today marking the last trading ahead of the Fourth of July weekend,
much of the trading action we see is simply book squaring and profit taking
ahead of the weekend. This will be a
light trading day with very few traders present on the floor. Therefore, I would not put any significance
on the correction we are seeing this morning other than it presents an
excellent buying opportunity.
Gold, according to
almost all of the major analysts is now headed for $1,000 an ounce. Therefore, the opportunity is excellent to
acquire on the "dip" today.
Non-farm payrolls
shrunk again, confirming the ADP report of yesterday. Payrolls fell 62,000 during the month of June and also retreated
by the same amount in May. The economy
has clearly slipped into recession. The
Dow and Standard and Poor's 500 have both fallen 20% from their October highs,
confirming they are indeed in a bear market.
The Nasdaq has been in a bear market right along. Therefore, safe haven demand for gold should
continue to grow.
The dollar bounced
back today after the ECB raised rates ¼%, which is simply a short covering
rally and has no significance. The
president of the ECB took a little softer tone on inflation and put more
emphasis on growth risks. Therefore,
the ECB is likely to remain on hold for a while. Those statements are the factor that motivated the profit taking
this morning.
Today is a great
opportunity for investors to acquire gold and silver at bargain basement
prices. Moreover, if you acquire Swiss
20 Francs or other forms of collectible assets, you can utilize the Price
Guarantee Program, which gives you two weeks of protection against any further
correction in the price of gold. This
is an excellent opportunity for investors to take advantage of. Call Goldline at 1-800-827-4653 to get
started.
Goldline will also
provide you with special reports quoting the analysts at Royal Bank of
Scotland, Barclay's Bank, the BIS, Goldman Sachs and others forecasting a major
drop in the equity market. There are
also quotes from Merrill Lynch and others forecasting a rise in gold to $1,000
an ounce and you will find comments from Citibank forecasting that gold could
double or triple from today's levels.
You may wish to be specific about requesting a free copy of the CD
interview with Frank Barbera. To
receive these free materials, call 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 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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