CHRYSLER FILING BANKRUPTCY

Gold and silver are both down sharply this morning, largely in reaction to the fact that Chrysler is going into bankruptcy for the purpose of forcing its hedge fund lenders to go along with the bailout program. The Administration apparently supports Chrysler in this endeavor. The unions and most of the other parties involved apparently had agreed to a restructuring program. However, the principal hedge fund lenders refused to do so. The fact that the bankruptcy courts will be utilized as part of a process of liquidating these liabilities and allow Chrysler to remain in business with Fiat as a new partner, is considered a constructive development. Perhaps this is the kind of situation that should be utilized not only with Chrysler and GM, but also with a number of the large banks that find themselves unable to meet the stress test. The fact that a Chrysler bankruptcy seems to be well received is a factor that reduced the safe haven demand for gold. As gold dipped $16, it pulled silver down along with it causing silver to lose $.39. The dollar strengthened on this news, up 47 basis points to 84.94, while oil was down $.54 at $50.43 a barrel.

All of these factors were negative for the metals market. There may also have been some technical selling that hit the market as gold failed to penetrate resistance at $901. In addition, one analyst reported some book squaring selling on the last trading day of the month. Clearly, the rally in equities yesterday and today and the big move upward in the Asian markets also reduced safe haven demand for gold and influenced the markets. Nevertheless, gold remains in the same trading range of $850 to $950 and remains in an area where it should be accumulated. The Aden Report says that the correction and consolidation phase is nearly over and a major up move lies directly ahead.

Commerzbank analyst Eugen Wienberg said gold could trade lower before trading back above $1,000 an ounce at the end of the year or the beginning of next year when inflation may again be in focus. A Futures Tech analyst said gold prices have been range trading but technical indicators suggest the metal will have a "breakout." He also said volatility is contracting and this usually happens ahead of a breakout move. As a consequence of these technical indicators, we may see gold breaking out to the upside.

There are a few analysts who think gold may trade as low as $800 in its bull market before returning back into the $1,000 range. However, in my opinion it is too early to call such a move. Once gold moves through the second quarter and into the third quarter, I think the markets will look considerably stronger. That is especially true if the economy is stabilizing and starting to demonstrate some signals of recovery. Moreover, there are now some so called "green shoots" beginning to emerge that could be signaling that inflation pressures will be on the rise. One of those factors is that interest rates are starting to move higher.

The jobless claims data showed a loss of 14,000 additional jobs to 631,000 in the week ending April 25th. That was considerably worse than expected. The total number of unemployed drawing jobless benefits now stands at 6.3 million and the unemployment rate remains at 8.5%. David Rosenberg of B of A/Merrill says the real unemployment rate is about 16%. Dr. Roubini and others think we may soon see that move up to 9% and top out at around 10% before recovery begins.

Given the overall outlook for the economy and the commodities markets, along with the specifics of the precious metal sector, it would appear that gold remains in an excellent buying zone. Those who would like to accumulate gold under $900 an ounce, have an opportunity to do so at these levels. Call Goldline today at 1-877-341-2646 and ask for free information on getting started with gold. Have them explain the features, benefits and cost structure of assets such as British Sovereigns, Swiss 20 Francs, $20 gold Double Eagles, and even the bullion assets such as Eagles or Maple Leafs. Have them also explain Goldline's Price Guarantee Program. Call Goldline at 1-877-341-2646.

Ask Goldline to send you the free information package, which contains articles on the replacement of the dollar as the reserve currency and the development of a new form of global money. These articles tie in closely with the articles from Forbes.com that discusses the potential for formal devaluation of the U.S. dollar. Those who are prepared for these events will find them to offer excellent profit potential in the metals sector.& Moreover, you will receive free articles that discuss the potential for gold to rise to between $1,100 and $1,500 an ounce, over the remainder of this year. These articles are from major banks and brokerage firms and explain the strong benefits of owning gold at these levels. You will also receive a free copy of a new CD interview I did with Frank Barbera and a free copy of the American Advisor Newsletter, a $25 value. Call Goldline now at 1-877-341-2646 for your free information package.

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 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, including articles on the dollar, the economy and gold, call Goldline at 1-877-341-2646. 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 at 1-877-341-2646 now to receive your free information package.