DOLLAR INFLUENCING MARKETS AGAIN

The dollar is up slightly, gaining 3 basis points to 78.36. Every other market including metals are all down. Worries about China slowing its economy down and throwing the rest of the world into another recession is frightening these markets. Gold is trading down $19, silver is down $.51, platinum is down $54 and palladium is down $23. The Dow industrials are down 70, the Nasdaq down 20 and oil down nearly $1. As you can see all of the markets are fretful about the actions of the Chinese and in addition, to the potential for sovereign debt defaults in Europe. I think there is also growing concern about the potential for a downgrading of U.S. government debt as a result of the enormous build-up of debt and deficits in our country.

In the Senate, a measure was introduced to increase the national debt $1.9 trillion. That would bring the debt to $14.29 trillion. Unfortunately, they said that may only last until next year. The finances of our country are in dreadful shape. Moreover, the finances of many of our states including California are in worse shape. California has had its credit rating downgraded and could easily default on its debt if the Federal government fails to come to its aid.

A period of stress and austerity may be in store for the entire country. As Richard Russell says, in this kind of an environment gold may be the last man standing. Based on the technical analysis that I read off of the wire services, gold now probably has the potential to correct to $1,075. It must clean out the weak holders in this market before it can develop the base that is necessary to return back above $1,200 an ounce. However, most of the major analysts who are forecasting a high of anywhere from $1,300 to $1,600 an ounce for the year also foresaw some period of correction and consolidation before those highs would be obtained. Consequently, this may be the best buying opportunity of the year. MKS Finance analyst Afshin Nabavi said that the demand for physical gold is rising now that the market has corrected. He believes that support for gold is now at $1,080 and see resistance at $1,100. Matthew Kaleel, portfolio manager at Sydney-based H3 Global Advisors said to the Dow Jones Wire Service, "Every time gold has undergone a serious correction in the past 10 years its turned out to be a good buy opportunity." He added that the long-term macro picture has not changed with easy monetary policies likely to remain intact even if there is some appearance of tightening. Real interest rates are likely to stay low to negative. He also commented that gold has been pressured by the weakness of the euro due to the Greek government debt issues. He said this doesn't make sense. "Greek government debt is rubbish and gold is not, so for gold to go down because of this is ridiculous."

Those who acquire gold from Goldline have a special feature that other gold buyers do not have. They can take advantage of Goldline's Price Guarantee Program, which provides a period of time during which you can re-price your transaction to get a lower price if the market should correct. Consequently, this gives people greater confidence in acquiring gold during periods of correction when they are best bargain buying opportunity. Call Goldline today at 1-877-341-2646 for the details of the Price Guarantee Program. Also ask for the free information packag, which now contains a special CD interview with Philip Klapwijk. Mr. Klapwijk explains the reasons why the dollar has been in a persistent declining trend since 1960. Call Goldline at 1-877-341-2646 now to receive the free CD. With the free information package you will also receive a free copy of the American Advisor Newsletter, a $25 value, along with articles and quotes from major bank and brokerage firm analysts. The information is very helpful. Call Goldline at 1-877-341-2646 now for your free information package.

Ask Goldline to explain the features, benefits and cost structure of the various gold and silver products that are available. Select those that best meet your own personal and individual needs and objectives. Those 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 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, 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.

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This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. You should review Goldline's Account and Storage Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline's spread, which is the difference between the price we sell our products and the price we buy them back, generally ranges between 5% to 20% on our most common bullion products and 30% to 35% on all other products including our popular European francs, proof coins, silver dollars and half-dollars, and graded coins. The market must go up enough to overcome this spread before an actual profit is achieved.  Precious metals and rare coins can increase or decrease in value.
Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage. To receive free information package on gold and precious metals investing, call Goldline at 1-877-341-2646.
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