DON'T WAIT TO BUY GOLD...

...Buy Gold and Wait

The metals are relatively steady this morning with gold down $2 and silver down $.02 in early trading. The dollar is up 35 basis points at 87.29 and oil is up $.19 at $47.54 a barrel. The equity market is lower with the Dow down 23 points.

Analyst Tom O'Brien told Dow Jones Wire Service that the recent softness in gold has been no more than "normal re-tracement." While he said the consolidation may take a few weeks longer, the uptrend remains intact and gold should be again assaulting the $1,000 level in the relative near-term.

Over the weekend you probably heard Fed Chairman Bernanke give an interview with 60 Minutes. This is an unprecedented event and it was designed entirely to enable Bernanke to be a cheerleader for the economy and the bailout programs. One of the things that caught my attention in the interview was that he clearly said that the Fed is "printing money." In economist's terms it is referred to as quantitative easing. The fact that Bernanke put it into common parlance and said they were printing money was extraordinary. When the Fed is printing money, it is debasing the dollar. In other words, it is depreciating the buying power of the currency. Ultimately, that leads to the phenomenon known as "inflation." To put it differently, the Federal Reserve is inflating the money supply, which will in time result in price inflation.

This is one of the key reasons to own gold for the long-term. While it may take a year or more for debasement of the currency to reflect itself in rising consumer prices, it is inevitable that will occur. Since we know the Fed is inflating very aggressively, and the economy remains very weak, and the banking system is far from repaired, gold is an excellent choice as a proper diversification for portfolios. Investors will want to own gold and silver assets to protect against the loss of buying power that will naturally occur as a result of the printing of money.

To further demonstrate the Fed's aggressive efforts to try to rescue the financial system, today they announced a two-year delay of new capital requirements for bank holding companies that otherwise would have gone into effect later this month. The amendments to the Capital Adequacy Guidelines will limit bank holding companies from including trust-preferred securities and other capital elements in tier one capital. In other words, they will be allowed to hold more risky assets as part of the lending reserves. Clearly, this allows these banks and other financial institutions more flexibility to meet their capital requirements. I think the next action will be to modify the "mark-to-market" rules, which will further ease the problems banks have with meeting their capital requirements. This is again, part of the Fed's package of efforts to try to rescue the financial system. However, it creates additional risk for the banks' clients and the public at large.

In economic news, retail sales were flat for the first two weeks of March versus February. Building permits increased in February 3%, which largely reflects permits for multi-family residences and the fact that bad weather compressed some of those building permits into February. The February Producer Price Index rose 0.1% and the core rate was up 0.2%, the overall rate was in line with expectations while the core was slightly above. Obviously, we are in a deflationary spiral at the moment, which is why the Fed is inflating as aggressively as it can. At some point the deflationary cycle will end and the inflationary cycle will begin.

It is during that phase that gold is likely to post its greatest gains. Perhaps that is why Merrill Lynch is forecasting gold at $1,600 an ounce in three years. UBS Bank is forecasting gold at $2,500 an ounce in five years. These forecasts are consistent with a turn around in the economy and the inflation cycle. Once again, we cannot wait to buy gold – rather we should buy gold and wait. Gold is not only a safe haven asset that protects us against crisis, but also will have us prepared for the inflationary developments that are likely to occur on the horizon. Gold is now in an excellent buying zone as it is consolidating between $890 and $950. Those who acquire gold during this period of consolidation are likely to do well, as gold will be higher by year-end according to many of the most prominent analysts. There are quite a large number of analysts forecasting that gold will have an average price of over $1,000 an ounce this year. That means we could expect a move to the $1,100 range at least. That would represent approximately a 25% increase from today's levels.

Call Goldline today at 1-877-341-2646 to get started so you can take advantage of this opportunity. Be sure you ask Goldline about the Price Guarantee Program, which provides you a two-week window of opportunity to re-price your transaction in the event of a correction. That will enable you to get more gold or silver for your money. In addition, you will want to ask for the free information package, which contains articles quoting the analysts from UBS, Merrill Lynch and many other prominent economist and market strategists. If you say, "Joe said to call," Goldline will also send you a free copy of the CD interview I did with Frank Barbera and a free American Advisor Newsletter. Call Goldline now 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 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 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, 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.