BULL RUN ONLY BEGINNING FOR GOLD

The dollar is stronger this morning, up 18 basis points and all other markets are in negative territory. The Dow is down 137 points, oil is down $1.47, but gold and silver are pretty steady holding in there with gold at $1,135.60 and silver at $18.32 an ounce. Gold and silver are showing exceptional strength given the fact that the dollar is rallying and they've had such enormous moves on the upside. In fact, it would not be surprising to see them rally back into positive territory by the end of the day or tomorrow. Gold could see a brief period of consolidation between $1,130 and $1,150. However, most analysts think that any correction would be very short-lived.

The Wall Street Journal reported yesterday, "Consolidation in these types of trends are normally very shallow and quick, and it won't be long before the next upside targets at $1,200 and $1,230 are met."In addition, Mark Farber said yesterday that gold at this level is abetter buy than it was at $300 an ounce in 2001. He said, "I wouldn't be surprised if, in another eight years - in 2017 - the yellow metal fetches $5,000 an ounce or more, which, by my math, would make it a better buy. …After almost a decade of trillion dollar deficits, that almost seems like a slam dunk when the measuring stick is the U.S. dollar."

In addition, famous investor John Paulsen who scored $20 billion worth of profits between 2007 and early 2009, is now opening a gold fund. As the Wall Street Journal said he is "a major investor is placing a big new bet on gold." The fund will begin on January 1st. Paulsen himself is putting $250 million into the fund. According to the Wall Street Journal article which appeared on the Dow Jones Wire Service, "At Tuesday's investor meeting, Paulsen argued that the bull run was only beginning for gold; he said he was starting the new fund in part to get himself more personal exposure to gold."

These are sophisticated investors who understand the markets and understand the underlying dynamics. While they are not infallible, they are generally likely to be correct in their market calls. Follow their lead and you have a better chance of being successful than if you followed the "hot tips" of some retail broker or so-called investment advisor. Investors should consider having their portfolios diversified with gold for the reasons I sited yesterday, namely diversification, wealth protection, an inflation hedge, and an independent profit opportunity with its own upside momentum. Call Goldline today at 1-877-341-2646 to either begin your gold diversification or to add to your holdings, if that seems appropriate.

In another piece of very important news that should cause investors to consider owning gold, the Central Bank of Russia is buying 30 metric tons of gold from the state precious metal and stones depository. The sale should be finalized before the end of this year. Moreover, the price that will be paid will be the market price. All of this is extremely bullish for gold, as we see major nations accumulating large amounts of gold for their central bank reserves. They are using gold as a replacement for the dollar. This further suggests a longer-term down trend for the dollar and a longer-term up trend for gold.

In economic news, some indicators of economic activity suggest further growth in the economy ahead. The Fed's Philadelphia Manufacturing Activity Index rose to 16.7 in November from 11.5 in October. This is a positive statistic. Moreover, the leading index of economic activity also rose 0.3% in October. On the employment front, the country still lost 502,000 jobs in the reporting week, although this is on somewhat of an improving trend. Yesterday, President Obama said that if the country doesn't get control of the debt and deficits that there will be a double-dip recession. That seemed to be a statement inclined to appease the Chinese rather than an appeal to the people of this country to restrain spending.

All of these developments, whether on the economic front or on the technical front are supportive of rising gold.

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 a purchase. Call Goldline at 1-877-341-2646 now to receive your free gold information package.