Daily Commentary

Dow Recovers Some of Its Losses

by Joe Battaglia
Posted: September 30, 2008

Yesterday the Dow lost 777 points.  However, 200 points of that drop occurred in the last 1-minute of trading.  Today, the market has recovered 211 points on the expectation or hope that perhaps some kind of bailout program will be achieved.  Some in the Republican Party are now talking about changing the "mark to market" rules, which would allow financial institutions to carry toxic derivatives on their books at face value rather than market value.  This would help to prevent triggering credit default swaps and may eliminate the problem without the massive bailout the government has been proposing thus far.  It is a way of voiding credit default swaps, but dangerous.  We will see how that develops.  However, the fact of the matter is the problems are still there and they are severe. 

 

The dollar is up 120 basis points at 78.66.  Apparently traders around the world like what happened yesterday insofar as the dollar was concerned.  Yesterday, the Fed pumped $630 billion into the global financial system.  They made another $262 billion in loans to U.S. financial firms.  This is an extraordinary amount of money to pump into the global economy.  Oil is up $1.65 at $98.02 a barrel.  Gold is trading down $4 in early trading, while silver is down $.39. 

 

A Dow Jones headline states: "Gold Up Trend Resumes, Targets $1,200 – Analysts".  They sited William Kwan, Bullion Director at Singapore's Gold Capital Management, who said in a daily update "with renewed investment demand for gold's portfolio protection, or safe haven status, metal "most probably will continue it's long-term upward trending mode for the next three years"; mid-term, or longer than six months, he targets $1,200, over period longer than a year he has $2,000 in sight."

 

Bullish forecasts such as this are becoming more common by the day.  Many of the major market analysts think gold is likely to move substantially higher.  Fortis Bank said gold could hit $1,100 to $1,200 in the medium term.  Dow Jones Wire Service reported them saying: "In the next weeks and months, I easily see gold hitting $1,100 to $1,200 an ounce."  These are very prominent analysts from major firms.  They should have a pretty good handle on the forecasts they are making for gold.  As a consequence, gold would appear to be extraordinarily cheap at today's levels. 

 

Therefore, gold presents a significant buying opportunity at these bargain basement prices.  Investors should call Goldline for assistance in getting started with gold.  Ask about Goldline's "Price Guarantee Program", which provides you with a two-week window of opportunity in which to re-price your transaction in the event of a correction.   Also ask Goldline how you can acquire free gold coins in conjunction with a transaction of $6,000 or more.  Call Goldline at 1-800-827-4653 to get started today.

 

Goldline is also offering an excellent free information package that will be very helpful for all investors.  Be sure to read the comments and quotes from major banks and brokers with regard to both the credit crisis that is underway, as well as their comments on the precious metal sector.  Call Goldline for your 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 $6,000 of private gold, you will receive a free gold coin.  Investors may wish to consider a tube of these coins to obtain two free 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.  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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