FED RAISES DISCOUNT RATE - DOLLAR SOARS

The Fed raised the discount rate .25% after the New York market closed yesterday and that caused gold to pull back. Overnight gold dipped to a low of $1,099.30, but it has rebounded very strongly trading down $4 at $1,114 an ounce. The dollar has soared, up 66 basis points at 81.06, which is the highest level in several years. In spite of all of that silver is up $.04 and looking quite strong. I view the metals in general as performing quite well given the announcement by the IMF and the Fed this week. Both of those factors could have caused a significant dip in the metals markets, but did not.

On balance, this suggests that the gold market is looking solid and that it is building a nice base at these levels. Bear in mind the forecast of major banks and brokers such as Goldman Sachs, which just in the past couple of weeks raised its gold forecast to $1,380. In addition, yesterday a prominent analyst cited on BusinessWeek.com calling for $1,400 an ounce this year. These analysts' forecasts are all in the same ballpark. Therefore, you may see gold as a bargain buying opportunity at these levels. The same is true of silver, which is looking very strong this morning.

VM Group announced today that miners continued their de-hedging programs drawing down hedges by eight million ounces. This year de-hedging is likely to continue they said, and this should also be a significant positive for the metals market. One analyst told the Dow Jones Wire Service that in spite of the news that has hit the markets this week, the technical charts for gold remain "upbeat" with gold trading above $1,100 an ounce for the most part. Afshin Nabavi of MKS Finance said that he sees gold likely to remain in a range between $1,100 and $1,130 in the near-term. Part of the reason that gold is holding in these tight ranges is that there are holidays in China and other parts of Asia. HSBC's analyst James Steele said that there appears to be a floor for prices right now given the markets ability to absorb the latest spate of bearish news in the Fed hike and IMF plans. With a floor under prices, it is reasonable to assume that a new base is building during this period of consolidation and that another up leg will begin in the near-term.

Some of the biggest strongest and most knowledgeable investors are acquiring gold at these levels. They include George Soros, John Paulsen, David Einhorn, Bank of America, Black Rock Capital and others. Call Goldline at 1-877-341-2646 now to learn about some of these actions and for information on getting started with gold and silver. Be sure to ask for the free information package and ask about Goldline's Price Guarantee Program, which is offered only by Goldline. Call Goldline today at 1-877-341-2646.

Ask Goldline to explain the features, benefits and cost structure of the various gold and silver products that are available. Select those that best meet your own personal and individual needs and objectives. Those 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 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 purchase. Call Goldline at 1-877-341-2646 now to receive your free gold information package.