EURO CRASHES ALL MARKETS AFFECTED

The economic news that broke this morning hammered the stock market and precious metals. It also made the dollar soar. The dollar is up 35 basis points trading at 79.72 on the index. Gold is down $28, while silver is down $.49. The metals are being severely tested this morning and it remains to be seen whether the $1,075 support level will hold.

Commodities in general were weak this morning, with crude oil and base metals down. Traders seem to be waiting for January's non-farm payrolls data due tomorrow. An unexpected rise in weekly U.S. jobless claims caused the markets to fall amid jitters that Friday's figure could also be worse than expected. In addition, the European Central Bank and the Bank of England both left interest rates unchanged, but the market remains concerned about the debt levels in some euro-zone nations especially Greece, Spain and Portugal. There is now developing risk aversion triggered by deepening concerns over the cohesion of the euro-zone. This is one of the things I have commented on over the past month or two. Nevertheless, CommerzBank said they expect gold to average $1,100 an ounce in the first quarter of the year. That means that gold would have to rally substantially from these levels because it has been below $1,100 most of the first two months.

With worries developing about the sustainability of the European Union, it cast in doubt the future of the euro itself. While I think they will manage to hold the union together, the influence of the union and its currency is beginning to diminish. That is why we are now seeing investors moving out of euros and back into dollars. It is a matter of choosing the lesser of two evils. While this has impacted the dollar on a short-term basis, analysts believe that the longer-term still remains positive for gold as the dollar has its own share of problems. We are rapidly approaching the point of no return with regard to the deficits and debt. As a result there will be a greater transition from currencies of all sorts, into gold.

Executives attending a major African mining conference said the price of gold should hold on to its strong run higher this year underpinned in part by a mining industry in steady decline. Many of these analysts were forecasting gold at $1,200 this year, but predicting greater volatility. Paul Walker, Chief Executive of GFMS said he remains a bull on the metals for the coming six to 12 months. Dundee Wealth Management forecast a likely average price for gold this year at $1,172 an ounce. Again, that means it will trade above $1,200. Analysts continue to believe gold is a buying opportunity at these levels for the long-term. Those who would like to take advantage of this bargain buying opportunity may wish to call Goldline at 1-877-341-2646. You should ask them about their Price Guarantee Program. That program gives you the confidence to acquire gold at these levels because if it should decline during a specified period you could have the benefit of the lower price. Ask Goldline for the details at 1-877-341-2646.

Providing further encouragement were statements from Aaron Smith, head of Superfund. He told the Dow Jones Wire Service that gold is likely to double in price against all main currencies, including the dollar, within five years. He sees gold above $2,000 an ounce. He further pointed out that as China becomes more concerned about its dollar exposure through its foreign exchange reserves it may be a gold buyer for some time. That kind of buying could certainly help to drive gold above $2,000 over the next five years.

Contact Goldline today at 1-877-341-2646. Also be sure to ask for the free information package so that you can read some of the forecasts from major banks and brokerage firms yourself. Ask also for a free copy of the interview with Philip Klapwijk of GFMS. You will find very helpful information in that interview. Call Goldline now at 1-877-341-2646.

Investors should ask Goldline 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, 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 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 an investment. Call Goldline at 1-877-341-2646 now to receive your free gold investment package.