PORTUGAL CREDIT RATING DOWNGRADE AFFECTS DOLLAR

Fitch downgraded the credit rating of Portugal's sovereign debt today. That caused a flood of money out of euros and into dollars. The dollar soared 87 basis points to 81.76 -- an incredible up move in the dollar. In the face of that, gold did very well to hold to a $12 loss, with silver dropping $.30. Gold dipped as low as $1,087.60 on the nearby futures contract, which is close to the $1,085 level that is rumored to have large buy orders writing to be filled. It is highly likely that some of these buy orders may start to be filled at around these levels.

The downgrading of Portugal's debt could raise the possibility that Spain will have its credit rating downgraded in the near term. The euro hit a ten month low against the dollar this morning, which was the key factor putting pressure on gold. Given the extent of the dollar rally, the euro decline and the panic out of euros, it would appear that gold is really showing some strength holding above the $1,090 level.

When you consider the fact that the U.S. government has sovereign debt problems as severe as some of those countries in Europe, one begins to question how far the dollar might fall once the credit rating of the U.S. government starts to come into question. Perhaps a more immediate issue is the potential for the British pound to fall considerably as they have an enormous debt burden as well. Oil and other commodities have also felt pressure from the strengthening dollar. Oil is down $1.43 at $80.49 a barrel and the equity market is lower with the Dow Industrials down 30 points.

With gold at these price levels, we might begin to see increased demand from India and China. Dow Jones Wire Service reported, "Gold is holding quite well, considering the euro's slide against the dollar, but the metal is vulnerable to a retreat towards $1,080, says Commerzbank trader Michael Kempiniski. Comments physical buyers, looking to gold as a safe haven, bought gold on dips … tips immediate support around $1,093 - $1,095 an ounce followed by $1,080 an ounce."

Those who would like to take advantage of this pull back in the metals should contact Goldline at 1-877-341-2646. Ask them about their Price Guarantee Program. All those who have acquired gold in the last two weeks utilizing that program, have the opportunity to re-price their transaction. This is a benefit that is offered only by Goldline. You may also wish to ask about any special offers that are available. And, ask for a free copy of Goldline's precious metal investors information. This information packet contains a CD interview with Philip Klapwijk, a Goldline newsletter, and several articles that provide you with price forecasts and information from major bank and brokerage firm analysts. Call Goldline at 1-877-341-2646 now to receive the free information.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver products that are available to you. 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 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 decision. Call Goldline at 1-877-341-2646 now to receive your free gold investors package.