Dip Creates Buying Opportunity
by Joe Battaglia
Posted: July 18, 2008
Oil rebounded
somewhat this morning, up $1 in early trading at $130.31 a barrel. The U.S. dollar is softer down 11 basis
points at 72.13. Equities are softer
with the Dow down 20 points. Gold is
currently trading down $13 and silver is down $.37. The drop in gold looks more aggressive than it is. Gold was actually up $8 yesterday;
therefore, today's correction is considerably more modest than it appears. Moreover, gold is holding nicely above key
support levels. Gold found support
overnight from firmer oil prices.
There is a lot of
rumor that perhaps the commodity futures trading commission will act to curb
oil speculation. This is similar to
what they have done with regard to the curtailment of naked short selling in
the financial stocks. Naturally, this
could have some impact on trading in the oil pits. More importantly for oil, the U.S. government has agreed to sit
in on talks with Iranian officials on the nuclear issue and to establish some
diplomatic presence in Iran for the first time in thirty years. This has eased some of the tensions between
the countries and eased fear that there may be an attack on Iran that would
shut down oil supplies. In fact, oil
has performed exceptionally well given the news of the past two days. While it has suffered the biggest loss in
history over the past three days, oil still remains above $130 a barrel and is
going to continue to contribute to inflationary pressures.
George Soros has
taken a long position in gold. He
believes that the gold to oil ratio will narrow to 10 to 1. At current oil prices, if that were to occur
gold would rise to $1,300 an ounce. A
number of analysts are still forecasting gold to rise to $1,050 or higher
before the year-end. Continuing
problems in the financial sector certainly are supportive of the gold
market. While Citigroup and other
financial stocks are higher today, Citigroup posted a $2.5 billion loss, which
was better than what was expected. The
same was true of Merrill Lynch, which lost $4.65 billion. Freddie Mac is apparently going to attempt
to sell $10 billion of new shares to raise cash. It will be necessary for the Federal government to backstop that
offering because it is unlikely they could accomplish the sale of that much
stock.
I think there are
going to be continuing problems in the financial sector. Citibank warned today that credit card
losses are accelerating and losses in other sectors of the finance market are
also worsening. Auto loans are going to
be a major problem for the banks as well.
Moreover, automobile sales have nearly dried up. That cannot be good for the economy nor the
banking system.
Looking at the
totality of these developments, investors would be well served to have some
gold as a "safe haven asset" to diversify and protect them against the type of
financial crisis that may be continuing to head towards our country. That is why it makes a great deal of sense
to acquire gold and silver now at these bargain basement prices. Each of the corrections that we have seen
for some time has presented a wonderful opportunity to get into the
market.
Take advantage of
this opportunity today by calling Goldline at 1-800-827-4653. Remember Goldline is offering a terrific
package of free information that truly explains the banking crisis and the
impact it will have on the economy and the markets. There are strong warnings from major banks and brokers that there
could be a very aggressive down turn in both stocks and the economy. Goldline is also giving away free copies of
the FDIC booklet, which will help you.
Follow their rules to be sure the FDIC covers your bank accounts. To get all of the free information you
should call Goldline at once, 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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