DEMAND FOR GOLD STRONG

The metals are mixed this morning with gold, platinum and palladium down, while silver is up. Silver is up $.06 in early trading, and gold is down $5. Oil is down $2.88 at $48.68 a barrel and the Dow is down 37 points at 8,035, which is better than had been expected for the equity market.

The World Health Organization has increased the risk of a pandemic to the highest level since they began keeping these statistics. They have also warned people to restrict travel to Mexico. This is a very bad virus. After learning the symptoms of this virus, it is pretty clear that is what I had as I was sick for the past almost five weeks. It certainly justifies the declaration of a public health emergency. Many expect this to have a significant impact on the markets. If this pandemic spreads further (it is expected to blanket the U.S.) it will have an impact on the equity market and commodities.

Dow Jones Wire Service reported today, "China's announcement that it has increased its gold reserves is a sign that central banks are viewing gold as an important monetary asset, said CPM Group in a "market alert" issued Monday." They continued to say, "For the longer-term, CPM Group said, "This is the most concrete sign yet that central banks are viewing gold as more important as a monetary asset." The consultancy later added, "Other central banks are having the same thoughts."

Viewing gold in the context of central bank holdings, it would appear that central banks throughout Asia and perhaps in other parts of the world will follow China's lead accumulating gold assets for their reserves. The expectation is they will reduce dollar holdings as they increase their gold holdings. The head of trading and physical sales at MKS Finance said gold is likely to trade in a range between $905 and $955. However, clearly gold has been in a range of $850 to $950 for several months and that seems to be continuing until we see a breakout.

One of the more positive factors is that gold has built a substantial base at these levels. Once it does breakout to the upside, it is likely to make a significant move higher, perhaps to the $1,000 level. We must remember that the results of the "stress test" will be released next month. Once they are, it could create an additional demand for gold as a safe haven asset. No matter what the results are, someone is going to be frightened by them. Either they will not be believable or the results will indicate that a number of banks are in severe trouble and need more money from the government.

A top official of the Dubai Multi-Commodity Center said, "With very low interest rates and governments injecting liquidity into the economy, gold's safe haven appeal will endure due to the fact that investor confidence is still at an all-time low, if not dead. These factors will also support the future prospects for gold in the UAE and wider region." He also said, "Today, gold is more appealing than cash in the bank." These observations are as true for those of us in the U.S. as they are for those in the Middle East. Clearly, the demand for gold is strong among all investors.

Investors should be utilizing this continuing period of correction and consolidation to accumulate gold. Some may wish to utilize Goldline's Price Guarantee Program, which provides a two-week window of opportunity to re-price your order in the event of a correction. This is a helpful tool for those who are nervous about the corrective process. Regardless of the price of gold, it makes a great deal of sense to own at least some gold in ones portfolio as a proper diversifier. The studies from Ibbotson and others have confirmed that holding some gold makes ones portfolio safer and more profitable over lengthy periods of time.

Call Goldline today at 1-877-341-2646 for further information and assistance in getting started. Ask them about British Sovereigns, Swiss 20 Francs, $20 gold Double Eagles and other assets that maybe of interest to you. Goldline also offers a complete line of bullion products. To learn more, call Goldline at 1-877-341-2646.

Be sure you ask Goldline for the free information package. It contains some excellent articles discussing China's demand for a new global reserve currency. It also contains information on China's accumulation of gold and the potential for formal dollar devaluation. In addition, you will find quotes from major banks and brokers forecasting that gold will rise substantially this year. The lowest forecasts seem to be indicating gold at $1,000 to $1,100 and at the high end forecasting perhaps $1,500. The editors of Barron's Magazine have predicted that gold will reach $1,200 this year, as has Fortis Bank and a number of others. It would appear to me that $1,100, which was forecast by GFMS, is a reasonable target for the year.To learn more and to receive the free information package, 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.

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.