GOLD AND SILVER POST AGGRESSIVE GAINS

Gold and silver posted aggressive gains this morning with gold up $26 and silver up $.56. Both of these markets were higher overnight and eased back a little on some early profit taking. The up move in metals is largely due to an 84 basis point drop in the dollar to 83.59. Oil is also benefiting from the weaker dollar, up $1.15 at $36.55. Mitsui Brokerage forecast gold will reach a high of $1,105 this year. It has a rather extreme spread between the high and the low, but nevertheless a high of that level would represent an enormous gain for gold, up more than 30%. They forecast silver to reach a high of $14.05, a gain of 26%, but again with a large spread between highs and lows.

The analysts opinions on gold certainly look toward higher average prices and higher highs for the year. That would suggest a continuation of the major bull market that is underway and has been for the past eight years. A rising gold market is very constructive for those who own gold and is indicative that the dollar is likely to experience a pronounced decline over time.

Analysts report to the Dow Jones Wire Service that there has been good demand for physical gold in the Far East, ahead of the Chinese New Year and that we continue to see demand for physical gold at high levels throughout the world. This weeks Barron's Magazine comments on the fact the demand for physical gold has been extremely strong, as people prefer gold coins to paper assets. There is a great deal of mistrust of the Wall Street community and people are beginning to say they want to own real physical gold that they can feel, touch, weigh and safely put away in their safe deposit boxes. With gold posting a sharp gain after holding support above the $800 level, we are now beginning to see significant amounts of short covering entering the market as well.

Yesterday, the stock market was lower through most of the day and at times was trading down around 200 points. However, a rumor surfaced that the government is negotiating with Citibank to nationalize the bank. That rumor, although denied, sparked demand in the equity market and caused the Dow to end in positive territory. The expectation that somehow the government will be able to rescue the economy and the financial system maybe misguided, but nevertheless hope springs eternal. Yesterday, David Rosenberg of Merrill Lynch indicated that the economy will not recover quickly no matter how much infrastructure spending is proposed.

In the economic news factory output in the U.S. plunged at an annual rate of 16.7% for the fourth quarter. That was on top of an 8.7% drop in the third quarter. This indicates that the economy is extremely weak and growing weaker. Obviously, heroic actions will be taken by the Obama Administration to try to turn that around.  Moreover industrial production fell 2% in December. That was worse than expectations. The Consumer Price Index dropped 0.7% in December on a seasonally adjusted basis. It was slightly better than expected but nevertheless, rather poor. Moreover, prices rose just 0.1% compared to December of 2007. That was the lowest calendar year increase since 1954 and well below the Fed's 1.5% to 2% target. Core CPI was up 1.8%. According to those numbers the country is not yet in an economy wide deflation, but it is very close. The trend is certainly towards massive deflation. If we do get a year of deflation, it would be the first time since the early 1950s that would have occurred. Every other year we have had the dollar losing buying power to a greater or lesser degree. It is quite remarkable that over a 60-year period, there has been only one year during which the dollar did not lose buying power. Yet most Americans are totally unaware of this terrible information. The fact that the dollar continues to lose buying power even during a severe economic crisis such as was experienced last year, is evidence of the fact that everyone needs to own some gold for purchasing power protection and protection of wealth.

Today is a great opportunity to get started with your gold investments. As gold has held support at the $800 level, many will have more confidence to come into the market at this point. Moreover, you can take advantage of Goldline's Price Guarantee Program, which provides a two-week window of opportunity to re-price your transaction in the event of a correction, that way you would get more gold for your money. To learn more about the Price Guarantee Program or to get started with gold, call Goldline at 1-877-341-2646.

You will want to ask for the free information package, which is very helpful for all investors. The free information package has articles discussing the possibility of further dollar devaluation, forecasts for the price of gold from major analysts and brokerage firms, along with a free copy of a CD interview of noted analyst Peter Grandich. Grandich has been excellent in his market and economy calls over the past few years. You will want to listen to that CD to find out what Grandich's views are for the economy and the markets this year. Call Goldline at 1-877-341-2646 to receive your free information package.

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 and how you may be able to receive free coins.

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.