Metals Are Demonstrating Solid Support
by Joe Battaglia
Posted: July 9, 2008
Gold rebounded
nicely this morning gaining $7 in early trading while silver is up $.22. Both metals are demonstrating solid support
and good demand for physical. Oil has
also rebounded up $.98 at $137.02 and the U.S. dollar is down 26 basis points
to 72.74. The equities are lower with
the Dow down 36 points.
Last week the
European Central Banks sold 62 million euros worth of gold. The central bank sales of gold from Europe
have declined dramatically. It is
certain now that they will not approach their full quota of allotted sales. Moreover, they are not likely to sell the
fully allocated 500 tons next year either.
This is all very bullish for gold as it reduces the supply available to
the market.
One prominent Dubai
based trader told Dow Jones Wire Service that he sees gold demand picking up in
the fourth quarter. A number of
analysts think demand will begin picking up in the next thirty days. In either event, the prospects for gold look
solid. Today Merrill Lynch analysts
said they continue to see gold moving to $1,000 an ounce by October and Citibank
see gold considerably higher over the next several years.
Iran test fired
nine missiles that are capable of reaching Israel. This represented some escalation in the tensions between the two
countries. Clearly, the test firing of
missiles at a time when they are negotiating with western powers to cease
nuclear enrichment programs is an escalation of the problem. As geopolitical tensions increase, it is
obvious that the demand for gold increases due to its safe haven status.
While the markets
may remain locked in a trading range until about the middle of September, I
think we will then see a breakout to the upside occurring. There are a number of factors coming
together in that time frame that should be bullish for gold. Therefore, you have an excellent opportunity
to acquire gold and silver at bargain basement prices today. Call Goldline now to get started at
1-800-827-4653. Be sure you ask for the
free information package, which contains excellent articles on the economy and
the markets.
The latest articles
are from Barron's Magazine and they point out the high degree of risk in the
stock market. Investors who have 401(k)
plans or IRA accounts with stock mutual funds should read these articles
carefully. With the warnings from Royal
Bank of Scotland, Barron's, Barclays, Fortis Bank and others that there could
be a significant stock market crash, investors need to evaluate the assets that
they own. We must not rely upon others
to make our investing decisions for us.
A perfect example of that is a quote from Business Week Magazine: "Bad
401(k) Advise: Smooth – talking investment brokers are promising unrealistic
returns – and Americans like these are seeing their nest eggs depleted." You cannot rely upon the brokers who sell
you stock funds to make decisions in your best interest. You must sort out the faulty information
from that which is honest and true. You
can only do that if you try to become better informed. You should read the warnings from major
banks and from financial publications.
Factor these warnings into your overall investing decisions. Goldline is also providing excellent
articles that give you information on investing in precious metals. Call Goldline now 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 Client Account Agreement, a company
brochure and a Coin Facts Risk Disclosure Booklet, read these 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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