DOLLAR RISES - METALS STEADY

Gold pulled back a little this morning in reaction to a stronger dollar and expectations that China might tighten monetary policy. An early indicator out of China is that they are gradually raising interest rates and that was causing their currency to rise versus the dollar and other currencies. Some say China may revalue the yuan by 10%. The higher dollar weighed on commodities in general and Charles Nedoss commented,"You are starting to hear some talk about China reining in lending." In addition, the dollar got a further boost from comments from Japan's Finance Minister who said he wants to see a softer Japanese yen. There may also have been some selling in advance of tomorrow's jobs report. There is an expectation that there will be a significant improvement in that report. However, a good deal of the improvement if any will come from the huge number of workers being hired by the Federal government for the census, additional Homeland Security personnel and seasonal adjustments. In other words, that report could be overrated.

Yesterday, France's President, Nicholas Sarkozy, called for an end to the dollar as the world's only reserve currency. They now have joined China, Brazil, India, and Russia calling for a new global reserve currency.

In early trading, gold is down about $5 but silver has moved slightly into positive territory after being lower earlier. With a significant number of analysts forecasting that gold will continue to advance at least through the first half of this year and perhaps reach $1,400 or $1,500 an ounce during that time period it makes sense to be accumulating gold on every dip or correction. With the dollar up 34 basis points and oil down $.40, this presents an excellent opportunity this morning to accumulate precious metals while they remain at bargain price levels. In spite of the slight correction, gold is holding nicely above support and looks like it is set to challenge overhead resistance. A challenge was made this morning with gold reaching $1,139.50 before easing back.

Dow Jones Wire Service technical analyst Francis Bray said that he expects gold to test resistance at $1,142 - $1,150. A breakout above those levels will carry into the $1,151.50 resistance area. Many analysts believe that resistance will be taken out and the next target will be the previous record high above $1,200. In short, it looks as though gold is an excellent buy at these levels. There continues to be strong demand from managed funds and for physical gold from Asia and other parts of the world. Moreover, with the equity market showing some softness, down 49 points on the Dow, gold is a clear alternative asset and it is the best form of money. Gold has proven its ability to maintain and preserve wealth and purchasing power over lengthy periods of time.

Those who would like to take advantage of the buying opportunity but wish to be protected against any further correction over a period of two weeks should ask Goldline for the details of the Price Guarantee Program, which provides ten business days of opportunity to re-price your transaction in the event of a correction. With James Moore of the Bullion Desk saying that gold has a good chance of challenging $1,170 and possibly $1,200 in the near term, it would make sense to utilize the pull back as a great buying opportunity. Call Goldline at 1-877-341-2646 today for assistance getting started. Be sure you also ask for the free information package, which will include a free copy of the American Advisor Newsletter. That newsletter features an article by the award winning Philip Klapwijk. Klapwijk was recently distinguished as the analyst with the best price forecast for 2009. You should read what he has to say about these markets. In addition, you can read comments from Philip Roth of Miller Tabak. Roth says that gold could double in the next five to 10 years. Read his analysis to gain further understanding of the dynamics driving gold at this point. 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 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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