FED PUMPING MONEY INTO SYSTEM

Gold is trading near unchanged levels while silver is $.15 in early trading. The dollar is up 7 basis points and oil is down $.72. The equity market shows the Dow down 60 points. On balance, we continue to see a good performance in the precious metals with consolidation occurring at reasonably high levels. Gold is the key indicator and it remains within a well-defined trading range of $880 to $950. More and more analysts are coming to the view that the market will break out to the upside sooner rather than later.

The latest report from B of A/Merrill Lynch says they continue to maintain their target of $1,500 to $1,600 an ounce. However, while they had been forecasting that this would take a period of three years, they are now indicating there will be some compression in that time frame. They stated that they, "Believe gold prices will move up to $1,500 an ounce in three steps over the next three years. With the outburst of the credit crisis last August, we entered the first step where gold started to reflect the rising risk premium ($1,000 an ounce). The second stage should be primarily about currency weakness ($1,200 an ounce). Finally, as global currency markets stabilize, the third stage in the appreciation of gold will be driven by a recovery in energy prices ($1,500 an ounce). In our view, the timeframe of these step changes prescribed in the gold price has become, first, condensed and second, the magnitude of these moves has become more certain."

These positive comments are indicative of the observations that are being made by a number of analysts. Consequently, they believe gold is an excellent buying opportunity at these levels. B of A/Merrill Lynch economist, David Rosenberg has also been stating every single day that his position on gold is bullish and recommends that gold be accumulated at these levels.

With Gordon Brown and other members of the G20 indicating the details of a new global currency will be under consideration over the next several months, and the IMF, which is expected to administer the new currency, will have its resources is tripled to over $1 trillion. It would appear the G20 are bulking up the IMF resources in preparation for it to assume global reserve currency duties. As this process begins, it will over time cause the dollar to weaken substantially. As the dollar weakens, gold should push higher. However, in the near term it is possible to see further corrective moves in the gold market to wash out the weaker holders and eliminate some of the speculative activity.

On the economic front, the news suggests the Fed and the Treasury will both be forced to continue to pump more and more money into the system. This further weakens the fundamentals for the dollar and is bullish for gold as it implies significant increases in inflation in the coming years.

The unemployment report came out this morning showing a loss of 663,000 payroll jobs in March. The unemployment rate is now 8.5% and when you add in discouraged adults the real unemployment rate is closer to 17%. These are extraordinary numbers and indicate further weakening in the jobs market lies ahead. The economy contracted at about a 6.3% annual rate in the 4th quarter and further job losses are expected to bring the unemployment rate up to the 10% level within the next 12 months. In that environment, not only the Fed but other central banks and treasuries will be forced to continue to expand money supply and try to pump up the global economy in an effort to put people back to work and stop the crisis from worsening.

All of this suggests massive inflationary efforts and that is ultimately destructive of the value of currencies and bullish for the ultimate currency – gold. These are some of the reasons why you see B of A/Merrill Lynch and others recommending gold and forecasting much higher levels. Some analysts and experts are quoting dramatically higher levels for precious metals. For example, the Aden Sisters said yesterday, "gold's mega rise is just getting started." They point out that in the inflationary period of the 1970s gold rose 2,300% in the 10 years from 1970 to 1980. If we saw the same type of price increase today, the target for gold would be $5,800. Whether it moves to those levels remains to be seen. However, many see $2,500 as being a reasonable and likely target over the next two to three years. Yesterday, an article from Yahoo Finance, written by Sham Gad, Real Money contributor said, "Indeed, some big money players are piling in with the long-term view that gold could reach $2,000 an ounce or more in the next year or two."

These are respective responsible analysts who are forecasting dramatically higher gold values. Investors need to take advantage of this and protect the value of their savings by accumulating some gold at these levels. Be sure you have a proper diversification into gold or silver by calling Goldline now at our new number 1-877-341-2646 or 1-877-341-COIN. Ask them to assist you in getting started with gold. Ask them also to provide you the details of the Price Guarantee Program, which provides a two-week window of opportunity to protect you against any price corrections. Call Goldline now at our new number 1-877-341-2646 or 1-877-341-COIN.

Be sure you ask for the free information package, which contains the latest articles discussing the movement towards the new global currency, price protection for gold, the coming devaluation of the dollar, and other very important articles that will be of great assistance to you. Call Goldline at our new number 1-877-341-2646 or 1-877-341-COIN for the free information package. You will also receive a free copy of the CD interview I did with Frank Barbera, a prominent market analyst and a free copy of the American Advisor Newsletter, a $25 dollar value for free. Call Goldline now at our new number 1-877-341-2646 or 1-877-341-COIN.

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 our new number 1-877-341-2646 or 1-877-341-COIN 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 our new number 1-877-341-2646 or 1-877-341-COIN. 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 our new number 1-877-341-2646 or 1-877-341-COIN now to receive your free information package.