AUSTRIA BANK PROBLEMS HIT EURO

Gold fell back overnight, reaching a low of $1,112 an ounce on the key futures contract. This was in reaction to a super strong dollar, up 54 basis points at 76.88. The dollar had reached a high of 77 overnight. The strength of the dollar was due to the fact that Austria nationalized one of its banks and announced that it has problems with several other banks. In addition, analysts are saying that there are many countries in Europe that are on the brink of financial collapse. Among them are Greece, Spain, Portugal, Ireland and several countries in the Eastern European block. Because of the severe condition of the European economy and its sovereign debt, it is expected that the ECB will be unable to raise rates anytime soon. Mexico's debt was downgraded again and Argentina is also having a sovereign debt problem.

Meanwhile, the U.S.economy seems to be recovering, with inflation rising (PPI up 1.8%) and growing optimism. That gave rise to the expectation that the U.S. may be better off than Europe, causing the euro to decline against the dollar. Nevertheless, in spite of that correction, gold turned around and moved back into positive territory, showing exceptional strength reaching a high of $1,130 an ounce. Silver also turned around and moved back into positive territory along with oil, which is up $.90. Equities are lower by 35 points. Given the fact that there has been an incentive to book profits as we move into the end of the year and the fact that trading tends to be relatively thin during this time of the year, gold is doing good work in holding onto these levels.

Meanwhile, in Europe the euro system's reserves of gold and gold receivables rose by one million euros. Central Banks simply aren't selling gold anymore; they prefer to be buyers. That is especially true with Russia, which is planning to buy 30 tons of gold before the end of the year and China, which is really underweight in gold and needs to substantially accumulate additional reserves. India has already picked up 200 tons and many other countries are looking at expanding their gold reserves and reducing their dollar and euro holdings.

When I heard that the Austrian government was forced to nationalize one of its banks, it reminded me of the bank failures in Austria during the 1920s that resulted in the Great Depression. One analyst today said the problems with Greece and Austria maybe the Lehman Brothers of Europe. Make no mistake about it this problem will spill over into the U.S. market. With Greece failing to come up with a credible debt recovery plan and concern about Austria's banking system, banks in the U.S. which tend to be interconnected on a global basis could be under more pressure as well. It seems that these debt crises are all over the globe as evidenced by the problems in Europe, the Middle East, and Latin America.

Given this type of environment, investors turn to gold as an asset that provides safety and protection. It also provides protection of purchasing power and wealth. These are the principle reasons that it is accumulated. In addition, with gold in a long-term bull market, many are acquiring gold simply as a profit center asset that can boost performance. In addition, some banks are raising their price forecast for gold (Macquarie) due to the fact that they expect inflation to rise above yield, thereby producing negative interest rates. When interest rates are negative, it tends to be a positive environment for gold. Peter Schiff, noted analyst with Euro Pacific Capital said even some tightening by the Fed would not restrain gold. Dow Jones Wire Service said, "Schiff says current expansionary monetary policies just deferring the pain of an economic rebalancing and lay thefoundation for an even greater economic disaster down the road. Schiff adds pullbacks in gold price should be viewed as buying opportunities."

If you agree with Peter Schiff and many do, this is your opportunity to acquire gold at bargain basement prices. Some may wish to utilize Goldline's Price Guarantee Program, which is available with some assets at no additional charge. Call Goldline at 1-877-341-2646 for details on this special program that provides you a two-week window of opportunity to re-price your transaction in the event of a correction. Investors should also ask for the free gold and silver investing information package. This information package contains BofA/Merrill Lynch's forecast for 2010, along with a number of other articles that are very helpful and informative. It also includes a free copy of the new American Advisor Newsletter, which contains a feature article written by Philip Klapwijk of GFMS. Klapwijk is one of the most prominent analysts in the business. A subscription to his service runs between $10,000 and $20,000. You can read his views for free in thenewsletter. Call Goldline at 1-877-341-2646.

Investors should ask Goldline 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, Swiss 20 Francs, 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 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program.

To receive the free information package on gold investing, call Goldline at 1-877-341-2646. 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 at1-877-341-2646 now to receive your free gold investment package.