CORRECTION AND CONSOLIDATION PERIOD CONTINUES

Yesterday afternoon, Jim Cramer of CNBC aggressively recommended that investors acquire gold. He said he sees the possibility of gold declining further, perhaps even to the $900 level. However, he said investors should be dollar cost averaging into the market because this is a correction and consolidation period, not the end of the bull market. This week, the gold market after reaching $1,000 an ounce has been correcting and consolidating. The support level was at $950, which was violated today. However, trading is very light and this market could turn around quickly. Cramer agreed with that view, saying you cannot try to time a bottom in this corrective process. Rather, you need to be moving into the market so you have a proper diversification into gold.

In an environment where the U.S. government and other governments around the world are simply printing up money to transfer wealth to the financial system, and while the governments are accumulating massive amounts of debt, gold will sooner or later break out to new highs. Several analysts including Walter DeWet and Ted Kendal of Mitsubishi Bank say they see this market turning around and moving back up towards $1,000 very quickly, perhaps within days. Some of the pressure on gold is due to the fact that the equity market has rebounded in a bear market correction. We should be mindful that corrections are a normal part of the market process.

President Obama's speech generated a considerable amount of confidence among investors. Therefore, some of the flight to quality buying has dissipated. Thoughtful investors do not see anything in the proposals and comments that the President made other than massive government spending that we can't afford, which is likely to lead to a falling dollar down the road. For now, the next key support levels are at $940 and $935. Nevertheless, the gold market remains bullish.

The Aden Sisters point out that the gold market tends to operate in eight-year cycles. We are now at one of those eight year cycle periods, during which a low is normally made. They said, "This recurring pattern tells us the low could have been last November's low, three months shy of eight years, or it could still be upcoming. The long side would be a low this summer. The point is that gold is near or at an important low time. This means we want to buy more gold during the weakness this year because gold is set to reach a record high, and the $2,000 level would eventually be a likely target near the top of the mega up-trend channel. In other words, whether it was last November's low or a low coming this year, the gold price is getting closer to the start of an even greater bull market rise. We should, therefore, have all our gold positions completely bought well before year-end."

Since most of the major analysts believe this correction will be a short-lived process, the opportunity to acquire gold at or near an eight-year low may be at hand. Investors should be accumulating during this time period as Cramer has been recommending. Moreover, look at the comments from Merrill Lynch. Every single day they reiterate their comment that they are very bullish on gold. Merrill Lynch says that gold is a "no brainer investment" in their opinion. They see gold rising to $1,500 to $1,600 an ounce over the next few years. If you look at other commodities, we are starting to see some strength emerging there as well. Oil is up $1.57 at $44.07 a barrel and the dollar is down 41 basis points at 87.50.

On the economic front, the data is uniformly poor. Unemployment surged once again. Mew claims for unemployment jumped unexpectedly to 667,000 and continuing claims topped 5.1 million. These are dreadful weekly numbers and suggest the economy is weakening rapidly. Yesterday, the Zale Corporation announced it is closing 115 jewelry stores across the country. This will be very bad for the mall business as they are large tenants. Malls across the country are beginning to look like ghost towns. Empty box stores and laid-off workers seem to be the rule rather than the exception. Moreover, the new Obama budget projects a $1.75 trillion deficit this year. That is absolutely astronomical. I do not see how we can avoid inflationary pressures when the government is running deficits of this magnitude.

It is factors such as these that cause investors to want to own gold for the long-term. The idea that the budget deficits could be cut in half in the next four years seems ridiculous. Moreover, if you look at General Motors, it lost over $84 million a day last year. They have burned through $6.2 billion in cash and posted a $9.6 billion fourth quarter loss. There is no sign of any improvement in the auto market. In fact, the TALF program that the Fed has was supposed to enable auto lenders to resume lending. However, the problem is that most of these lenders do not qualify for that program.

These are all very substantial reasons to move into gold without delay. Call Goldline at 1-877-341-2646 for assistance in getting started. Ask Goldline about special offers such as free shipping or the utilization of Goldline's Price Guarantee Program. You should also ask for the free information package. Tell the folks at Goldline that Joe said you should ask for the free CD and the free copy of the Advisor Newsletter. Call Goldline at 1-877-341-2646.

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 and how you may be able to receive free coins.

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.