Daily Commentary

Senate Expected to Pass Bailout Bill

by Joe Battaglia
Posted: October 1, 2008

The Senate is expected to pass it's version of the bailout bill by this evening.  In reaction to that, the dollar continues stronger up 33 basis points at 79.78 and oil is down $1.96 at $98.68.  Both of those should be significantly negative factors for gold and silver.  However, both are higher along with platinum and palladium.  Gold is up $9, silver up $.35, platinum up $17.90 and palladium up $5.30.  That's a strong performance in the precious metals.  It seems investors are taking some profits from yesterday's equity trade with the Dow down 73 points at 10,757.  Some of that money may be moving back into the precious metals as safe haven assets.  Clearly there is strong safe haven demand for gold in Europe where banks are failing.

 

The head of the FDIC, Sheila Bair said it would be helpful to temporarily lift deposit insurance limits at banks.  The politicians are calling for an increase to $250,000.  This is an effort to calm the markets and stabilize the banking system.  There has been a significant amount of money moving out of banks and many market funds as individuals have become nervous about the financial system in general.   There has also been large demand for physical gold and silver, resulting in shortages.

 

In my view, it makes a great deal of sense to have some diversification into gold and silver assets as a way to protect and preserve purchasing power over the long term.  They have also proven their worth as safe haven assets over the course of the financial crisis we have been in.  You have many prominent bank and brokerage analysts who think gold will continue to post extraordinary gains going forward.  At the London Bullion Dealers Association conference in Kyoto, Japan over last weekend, the consensus was that gold has a very good chance at being over $1,100 an ounce in the next few months and above $2,000 within a year.  As a consequence many investors are seeking to own some gold at these bargain basement levels. 

 

Investors should contact Goldline for assistance in getting started with a gold investment portfolio.  Gold and silver are part of an overall diversification strategy that may assist most investors.  Ask Goldline about the Price Guarantee Program that provides a two-week window of opportunity to re-price your transaction in the event of a correction, along with asking them how to obtain a free gold coin in conjunction with a transaction.  Goldline now has available the new 2010 Vancouver Winter Olympics gold Canadian coins.  These are very attractive coins.  Call Goldline at 1-800-827-4653 for assistance in getting started with gold and silver assets and to learn more about their specials.

 

Yesterday, I added to the free information package an article entitled "Buffet's "Time Bomb" Goes Off On Wall Street".  This is an excellent addition to the free information package as it explains, in very easy to understand terms, the development and nature of the credit crisis that faces our country.  It would be helpful for all investors to read this article and become familiar with the problems at hand.  It tells you the truth about the crisis.  Call Goldline now to receive 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 $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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