DOLLAR SURGES

Gold and silver fell aggressively this morning in reaction to an enormous surge in the dollar. The dollar is up 81 basis points at 78.31. This caused gold to pull back $25 and silver fell $.58 in early trading. It also impacted oil, down $1.22 at $77.80 a barrel, the Dow fell 150 points and the Nasdaq is down 34 points.

The dollar surged in reaction to concerns about European sovereign debt and as a result of rumors that China is moving toward tightening monetary policy. I think the election in Massachusetts with the Republican candidate winning is also a significant factor bolstering the dollar. I think there may be some expectation in the markets that the Democrats loss of a filibuster proof majority will stop some of the bills that have been pending and kill the health care reform bill. The expectation is if there is gridlock they will not be able to spend as much money as if there is one party in power. It seems as though anytime there is one party that controls congress, whether it's Republican or Democrat, spending goes through the roof. When there is gridlock there tends to be less spending and less debt. It's too early to determine how this will all play out. There is a growing backlash against the government bailouts of major banks and brokers, along with concerns that deficits and debt must be brought under control. However, the actions that would necessary to accomplish this would be so draconian that it would crush the American economy. As a consequence many analysts continue to believe that devaluation is the most likely course as it is the least painful solution in the near term.

New home construction fell more than expected in December, while inflation at the wholesale level seems to be rather modest. Housing starts are down 0.4% from the previous month. Producer prices rose at a seasonally adjusted .2% for the month of December, after a 1.8% rise in November. Looking at the overall picture, producer prices are rising much higher than people would have expected. Even in a dreadful economy such as we've had over the past two years, inflation continues to be a significant problem. This is because the dollar continues to lose buying power on a trend basis.

This morning gold seems to have found support and bounced off support levels and the correction may run out of steam as the day wears on. Given the forecast of people like Fred Hickey of $1,600 an ounce for gold this year, Philip Klapwijk forecasting above $1,300, BofA/Merrill Lynch forecasting $1,500 by early next year, gold at these levels looks like a tremendous buying opportunity. If we look at the average price forecast for the year by these major analysts, they have anticipated a fairly wide range of trading but nevertheless expect the overall trend to be significantly higher.

That presents an opportunity for those who understand the market to be bargain buyers or to dollar cost average. Remember, Goldline offers you a tool to assist you in dealing with corrections enabling you to have more confidence with your purchase. That is the Price Guarantee Program that gives you a window of opportunity to re-price your transaction in the event of a correction. Call Goldline at 1-877-341-2646 and have them explain the Price Guarantee Program to you. Be sure you also ask for the free information package so that you can analyze and understand the developments that are occurring on a longer-term basis in our markets. You will also see the forecasts from these major banks and brokerage firms for gold values over the coming year or two. Remember this, these brokerage firms do not make significant amounts of money off of gold. Their principle business is investment banking and equities. Therefore, more credence can be given to these forecasts. Call Goldline at 1-877-341-2646 now for the free information package, and they will provide you with a free copy of the American Advisor Newsletter, along with a free DVD.

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.