DOLLAR SOARS - GOLD HOLDS $850 LEVEL

A soaring dollar caused gold and silver both to break down today, falling heavily in active dealings. The dollar rose 105 basis points to 82.89, while oil is down $.13 at $46.25. The fact that the dollar is soaring is the key factor pushing gold down $27 and silver down $.63. Moreover, safe haven demand from the Middle East tensions has been factored into the gold price and has now abated. With it being apparent that the conflict is not going to widen, some of that safe haven demand has simply disappeared. Nevertheless, gold has held above key support levels, as has silver. Gold holding above the $850 level is a positive sign. The equity market is also lower with the Dow down 79 points in the first fifteen minutes of trading.

Some of the pull-back in the precious metals may also due to some profit-taking according to a few analysts. I note that bond yields seem to be rising. That is an indication that lenders are demanding a greater premium to lend money. That will, in time, be a positive factor for gold. Certainly there is nothing on the horizon that would suggest the dollar should strengthen. James Turk said, "The outlook for the U.S. dollar continues to worsen as … the Fed's zero interest rate policy removes any incentive to hold dollars in an environment where … rapid money growth portends a surge in inflation. M3 … grew by about 10% in 2008, near record highs … M2 and M1 increased over the past year by about 10% and 17% respectively. These rates of growth in the quantity of dollar currency are highly inflationary … the Federal Reserve has thrown away the rule book." Now that President-Elect Obama is proposing a massive stimulus package that would include $310 billion in tax cuts, it is likely the dollar will fall further over time.

While some analysts think the gold market may consolidate or trade lower over the next month or two, even these analysts think the second half of the year will be positive for gold. In addition, geopolitical concerns from Russia, Pakistan, the Middle East and elsewhere may be underestimated.

Therefore investors may wish to view today's correction as an excellent buying opportunity. We should also remember in bull markets the corrections tend to be dramatic and sudden. The advances are slow and grudging. In other words, bull markets climb the proverbial wall of worry. To learn more about getting started with gold and to read some of the forecasts of major analysts from banks and brokerage firms around the globe, call Goldline at 1-877-341-2646. The free information package includes articles quoting Citibank forecasting gold to rise over $2,000 this year, Merrill Lynch forecasting gold to rise over time to $1,500, and a number of other analysts who think gold will rise to between $1,000 and $1,200 by the end of the second quarter. Be sure you read the article from Forbes.com discussing the possibility of formal dollar devaluation. With gold correcting today, you may wish to take advantage of Goldline's Price Guarantee Program that provides a two-week window of opportunity to re-price your order in the event of a correction. It is not available with all assets, so be sure to ask the folk at Goldline for the details. If you would like assistance in getting started with gold and would like 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. 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 Swiss 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program and how you may be able to receive free coins.

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.