GOLD AND SILVER BREAKOUT - $1,004 NEXT TARGET

Gold and silver have taken off on the upside, breaking above the $970 resistance level on gold with ease. Gold is up $13.90 in early trading with the key contract trading at $977.10 an ounce. Gold reached a high of $980.20. Silver is up $.26 at $15.42 an ounce, after reaching a high of $15.58 on the nearby contract. The dollar is being crushed today, down 93 basis points at 79.51. That is a major drop in the dollar and perhaps suggests continuation of the bear market slide, which will likely carry the dollar down to the 70 – 72 region on the index. Oil is reacting to the positive side also, up $1.18 at $66.26 a barrel.

The combination of a weaker dollar and higher oil prices is likely to result in significant increases in inflation over the coming years. Consequently, I think there will be a major burst of inflation. Some are warning that we could see a hyperinflation in our country. I hope that a hyperinflation translates out to inflation in the 15% to 20% range rather than hundreds or thousands of percent annually. If we get back to the inflation that was seen in the late 1970s and early 80s, we would see inflation on the order of 15% to 20%. That in and of itself would be extraordinarily positive for the metals and could possibly drive gold into the thousands of dollars an ounce. However, it would also have negative implications for savers.

Dow Jones Wire Service reported, "Historically, gold has tended to rise when the dollar falls as investors turn to the metal as an alternative currency, and vice-versa." Once again, gold is demonstrating its principal properties as an excellent storehouse of wealth and the best form of money. So far this month, the dollar has lost about 5% of its value. In the meantime, gold has increased about 11% during the month. That demonstrates gold's ability to perform at a time when the dollar is weakening. Moreover, it demonstrates that a modest diversification into gold can protect a great deal of funds.

To illustrate the point, if a person had $10,000 in cash, they would have lost approximately $500 this month in purchasing power. If they had 20% or $2,000 in gold, they would have gained $220. Therefore the losses due to the falling dollar would have been mitigated by almost 50%, with only a 20% diversification into gold.

Bill Gross, the Chief Investment Officer of the largest bond mutual fund in the world, Pimco, offered a dreadful market outlook in which he sees lower returns, decreased U.S. growth, and the loss of the dollar status as the world's reserve currency. Mr. Gross and others have been recognizing this dangerous fact for some time.

On the economic front, GDP fell at a seasonally adjusted 5.7% annual rate from January through March. That shows an economy that is in much worse condition than people had anticipated or forecast. It certainly adds to the reasons to own gold as the problems in the economy remain at crisis levels. In addition, you now have problems with North Korea, Pakistan, Afghanistan, Iraq and Iran. These geopolitical problems are among the factors that Bank of America/Merrill Lynch cites consistently as a good reason to own gold and as another reason why gold prices are likely to continue rising. We have an abundance of analysts who are forecasting gold between $1,100 and $1,200 an ounce by the end of this year. Those forecasts may prove conservative. In fact, some of the analysts are forecasting $1,500 or more, by the end of the year. Those forecasts may come into play, if the market continues to perform as it is now.

Call Goldline today at 1-877-341-2646 and ask them to assist you in getting started with your gold needs. If you are underweight gold, this is the time to add to your holdings before gold pops above $1,000 an ounce. Remember the Aden Sisters and other technical analysts say that a move above $1,004 will cause gold to rise to new all-time record highs. In fact, a move above $1,004 could produce a very aggressive move to the upside, into the $1,100 to $1,200 range in a reasonably short period of time. Therefore, this is the time to add to your holdings. Call Goldline at 1-877-341-2646 for assistance in getting started.

You should also ask for the free information package. We have put several new articles in the package, including articles that discuss the call for a new global currency, articles that discuss devaluation of the dollar, price forecasts for gold and other factors. You can also receive a free copy of the CD interview I did with Frank Barbera. That CD provides a tremendous amount of information on what's happening in the economy and likely to happen over the remainder of this year. Call Goldline at 1-877-341-2646 for your free information package.

Contact Goldline and ask them 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 needs and objectives. Those 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 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 a purchase. Call Goldline at 1-877-341-2646 now to receive your free information package.