GOLD PRICES GAIN AS INVESTORS SEEK SAFETY

by Goldline.com | July 13, 2010

Gold prices are gaining Tuesday on the New York Spot Market as of 11:23 a.m. EST as investors flee to the metal after Moody's downgraded Portugal's sovereign debt rating. Moody’s slashed Portugal’s debt rating two notches to A1 with a stable outlook stating the country's growth prospects remain weak. Bargain hunters are also driving prices as investors take advantage of the recent dip in prices – a 1.1% decline in the last week. (The Street, 7/13/10)

Stocks are rallying on the New York Stock Exchange on renewed optimism after Alcoa's profit report reassured investors ahead of a big wave of quarterly results due out this week. David Jones, chief market strategist at IG Markets told CNN Money, "A wave of optimism is going around the world at the moment." However, Jones cautioned investors the risk remains over European debt, which “will remind markets that everything is not as positive as it could be." (CNN Money, 7/13/10)

Charles Cooper at Oriel Securities tells “The Guardian” there is concern we could be heading towards a second leg of the financial crisis. Cooper believes governments "could be tempted to print more money to dig us out of a hole. "That could precipitate inflation, making gold even more popular as a safe haven." In Bristol, Mark Dampier of stockbroker Hargreaves Lansdown said he believes gold will continue its upward trajectory because "governments have printed money like there is no tomorrow, debasing their currencies. I wouldn't be surprised if they print even more before the crisis is over," he said. (The Guardian, 7/11/10)

† This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. You should review Goldline's Account and Storage Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline's spread, which is the difference between the price we sell our products and the price we buy them back, generally ranges between 5% to 20% on our most common bullion products and 30% to 35% on all other products including our popular European francs, proof coins, silver dollars and half-dollars, and graded coins. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage. To receive free information package on gold and precious metals investing, call Goldline at 1-877-341-2646.
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