GOLD AND SILVER ON THE RISE

Gold and silver are both higher this morning as rumors are swirling that Bank of America, Citibank and perhaps some other banks will have to raise additional capital. There is some talk that Bank of America will have to raise as much as $10 billion in new capital in order to meet the requirements of the stress test. In the meantime, Newsmax.com reported that David Tice, a noted fund manager said, "The bear market in stocks is just hibernating now and will soon come back with a vicious growl." Tice called the market top in 2007 and he believes the up move we've seen from the March 6th low is simply a bear market rally.  Warren Buffet this morning said it is likely that the economic difficulties will hang around for the next five years. However, there are some who believe the economy is bottoming now and that there will be some moderation of the pace of decline, which will ultimately lead to stability. While it may be some time before people are shouting, "happy days are here again" there should be some early signs of recovery by next year.

A number of analysts believe that once signs of recovery begin to emerge, that inflation will emerge along with it. That would then create the most bullish scenario for the precious metals. When one looks at the patterns in the precious metals, it seems pretty clear that those who have been acquiring precious metals are doing so for the long haul. When there are corrections there is very little selling and, on the other hand, there is a great deal of demand for gold as a safe haven asset and an asset to provide proper diversification for other assets in individual and institutional portfolios. That process is likely to continue.

The belief in gold is quite strong today, with gold trading up $15.50 and silver up $.41 in early trading. The equity market is also stronger with the Dow up 149 points and oil is up $.39 at $53.59 a barrel. It may be that the dollar will continue to weaken. The dollar is down 3 basis points this morning at 84.52 on the index.

President Obama is now seeking changes to the tax code that would eliminate special tax breaks for companies that send jobs overseas. This is something that I have argued for many times as it makes common sense that you shouldn't give tax breaks to companies that ship our jobs out of the country.

There are some who view the gold market as reflecting considerable inflation pressures ahead. One of the factors that has been encouraging the metals this morning is that there are reports of China buying gold. Obviously, the Chinese government and individuals and institutions in that country have been accumulating gold at a pretty aggressive pace. Moreover, there are certain holidays that cause the demand for physical gold to increase and we are now moving into the timeframe when the physical demand in China, India and Japan all will be on the increase.

With gold back above $900 an ounce, I believe there will be an increase in the demand for gold, which should push it further to the upside. A number of analysts think $934 will be the next resistance level. Those who have been wanting to acquire gold but waiting in hopes that it would fall, seem to have missed the boat. If you have not gotten into the gold market yet, you should do so at once before this market moves more aggressively to the upside. Remember this, once $934 is taken out, gold will move to the $950 level where it will again encounter some resistance. There are so many analysts including the editors of Barron's Magazine, Fortis Bank, Citigroup and so many others who think gold will rise above $1,000 an ounce by the end of the year. In fact, many of them are forecasting prices of anywhere from $1,100 to $1,500 an ounce. Jeff Rhodes said he sees gold rising above $1,200 this year. Phil Menduca sees $1,000 near term and $2,000 by the end of next year.

Investors should not delay in getting started with gold. The same is true of silver. Call Goldline today at 1-877-341-2646 to get started with gold or to add to your gold holdings at these bargain basement prices. Ask Goldline to explain the features, benefits and cost structure of gold and silver assets.  You may also wish to ask Goldline about their Price Guarantee Program, which provides you with a two-week window of opportunity to re-price your transaction in the event of a correction.  This is a very helpful tool. Call Goldline at 1-877-341-2646.

Ask Goldline for the free information package. You will receive a copy of a brand new CD interview I just did with Frank Barbera a little over a week ago. He gives some very interesting forecasts for precious metal prices along with his opinions on the markets and other factors of great importance to all investors. Call Goldline now at 1-877-341-2646.

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.