GOLD CONSOLIDATION CONTINUES

In early trading this morning as we await testimony from Fed Chairman Bernanke, we see gold down $10 and silver down $.10.  Bernanke's prepared statements indicate if the Congress and the Administration take the correct steps the recession may end this year and 2010 will be a year of recovery. However, he said it would take several years to return to some kind of a normal economy. Bernanke's hopeful forecast contains a number of caveats, the main one being that officials must successfully break what he called an "adverse feedback loop" in which economic and financial strains become self-reinforcing. In other words, he is putting great pressure on the Congress, particularly by his language that the U.S. is undergoing a "severe contraction" that seems to have continued through the first quarter of this year.

The economy contracted at a 3.8% annual rate during the fourth quarter and economists think this could be revised to show as much as a 5% decline based on the December data. They think GDP may plunge another 5% this quarter before settling somewhat around the middle of the year. Home prices also tanked again, with the Case Schiller Index reporting a 20% decline in home values. Consumer confidence hit a historic low for the month of February.

I suspect after this period of correction and consolidation has run its course, the markets will begin to react to the economic data with a continued "safe haven" demand for gold. Some analysts' say that the aggressive stocks sell off of the past several weeks may be winding down. However, there is no evidence of that that I can see thus far. While the Dow is up 30 points, that isn't much of a recovery given the aggressive drop yesterday of 250 points. There is also a great deal of talk about nationalization of the banks. Whether you use that word or not, it is pretty clear the banks are in severe trouble and the government is going to end up taking over the banks in some fashion to liquidate the bad assets.

In addition, the AIG situation has produced even greater losses for the Fed. The Wall Street Journal reports that they may have lost as much as $60 billion in the past quarter, which would be rather significant for the Fed to absorb those losses. On top of those woes, we are likely to see bankruptcy filings for the major automobile manufactures before much longer.

All of the money that is being spent by the government and the liquidity pumped into the system by the Fed is likely to lead to aggressive inflation down the road. It may take a few years for that inflation to emerge, but when it does some are referring to it as "hyper-inflation." Even Fed Governor Lockhart made reference to that word, "hyper-inflation" in attempting to calm fears that we would be headed toward such a dreadful event.

In this environment I think it pays to own some gold as a method of protecting against the crisis that is developing and it pays to have a diversification into gold as part of your overall portfolio. Call Goldline today at 1-877-341-2646 to have them assist you in getting started. Ask them about their special offers that may enable you to get either free shipping or utilize Goldline's Price Guarantee Program. In addition, Goldline is happy to provide a free information package that will be of assistance to all investors. It will include a number of important articles talking about the potential for dollar devaluation, along with analysts' opinions on the markets and where the dollar may be headed over the course of time. You will find these articles very helpful. Goldline is also giving away a free copy of the CD interview with Frank Barbera. You should listen to that interview. You have the opportunity to obtain it for free where most people have to pay for his advice. Call Goldline at 1-877-341-2646 to receive the 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.