THE DOLLAR IS IN JEOPARDY

by Joe Battaglia | October 23, 2009

Gold is finishing the week in positive territory. It is trading up $6 shortly after the open. Silver is up $.34. Both of the metals trading in positive territory in spite of the fact that the dollar is up 20 basis points at 75.30. Oil reached a high of $81.78 overnight, but it is currently down $.38 at $81.81 a barrel. One analyst told Bloomberg Wire Service that he sees oil moving back up to $100 a barrel due to dollar weakness. A weak trending dollar is also the key factor pushing gold upward.

Yesterday's USA Today newspaper ran a cover story entitled "Weak Dollar Raises Talk of Alternative World Currency." When I first started discussing the movement towards an alternative reserve currency to replace the dollar, some may have disbelieved those news reports. However, now it is mainstream to believe that the dollar will continue to weaken and may very well be replaced by a new global currency. Investors need to take action to protect themselves. If the dollar is replaced it would most assuredly have a significant impact on the value of your accumulated savings. Therefore, you should protect your accumulated savings by hedging against the inflation that would result from a falling dollar. Gold serves that purpose quite well, as does silver.

Fed Chairman Bernanke said today that he continues to believe that the financial turmoil is abating. He recommended that Congress pass laws to require the financial system to pay the cost of the failures. He also said the financial firms should be prohibited from telling people that stocks are the best asset for planning long-term retirement and other long-term goals. They should be required to stop saying things like "stocks always go up."

In my opinion,there is a lot of misinformation in the financial markets. One of the factors that is very important is in order to be properly diversified, you cannot have all of your money in stocks. There must be a proper and suitable allocation among equities, income producing assets and inflation protection assets, such as gold and silver. The Dow Jones Wire Service said, "In his remarks Friday, Bernanke also lamented the state of financial sophistication in the general public, saying too many households 'don't understand the basics."

Those who do not have a proper diversification should consider acquiring gold and silver at this time by calling Goldline at 1-877-341-2646. Be sure you ask for the free information package, which you will find helpful and informative. Also, ask for a free copy of the GFMS 2009 Gold Survey Update. That is a book that is worth $450 and you can have it for free simply by asking for it. Call Goldline at 1-877-341-2646.

Investors should 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 investing needs and objectives. Investors 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 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 at1-877-341-2646 now to receive your free gold investors package.

†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 Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. 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 1-877-376-2643.

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