GOLD GAINS 62 BASIS POINTS

A big upward surge in the dollar, which gained 62 basis points this morning, put further pressure on gold and silver causing them to fall back. Analysts say some participants are moving out of precious metals and into grains and softs. As a consequence there are likely to be more sell stops hit in the gold market with most analysts having an eye on $862 and then $850. However, below the $870 level, there is wide spread expectation that Indian buying will emerge to provide support for the market. In addition to the stronger dollar, Citigroup reported better than expected earnings along with several other regional banks that had a better performance than had been anticipated.

Barclay's Bank told the Dow Jones Wire Service, "Investor sentiment remains positive, and, beyond short-term corrections, a weaker dollar and a potential build in inflation are likely to spur investors to increase their exposure to gold and allow prices to gain upward traction again. Adds key festivals in India should offset a weaker economic outlook." Craton Capital, which manages metals and natural resource sector equity funds, says that the median to long-term outlook for gold remains bullish. They pointed out that the average U.S. fiscal and monetary stimulus response to any recession since World War II is 2.9% of GDP. However, in the current recession it is 28.9% of GDP. They said, "We strongly suspect that the impact of that scale of U.S. monetary expansion will be felt sooner than later and so will its impact on the intrinsic value of the dollar."

The bottom line is that these corrections are always difficult to endure. However, in time they run their course and the bull reassumes its march upward. Estimates are now emerging from responsible sources of inflation starting to build a head of steam. The Reuter's University of Michigan 12-month inflation forecast is for a gain of 3%. A move of that magnitude would certainly be bullish for gold. Moreover, once that inflation genie jumps out of the bottle, it is going to be very difficult to put it back in.

As a consequence, I think investors should be continuing to accumulate gold on this corrective move. We can see the beginnings of inflation pressures even in the treasury market where rates are starting to creep higher. Once rates start moving up and inflation is increasing, I think you will then see gold making a more substantial move to the upside and breaking out of this recent short-term downtrend.

Those who would like to take advantage of this market opportunity may wish to consider utilizing Goldline's Price Guarantee Program. That program provides a two-week window of opportunity to re-price your transaction in the event of a correction thereby getting more gold or silver for your money. Call Goldline today at 1-877-341-2646 for further information on utilizing the Price Guarantee Program. In addition you may wish to give consideration to some of the more popular coins with investors at Goldline, such as the British Sovereign, the 20 Francs and other similar assets. Call Goldline at 1-877-341-2646.

To receive the free information package, which you will find very helpful and informative call Goldline at 1-877-341-2646. If you call today, you will receive a free copy of the American Advisor Newsletter, a $25 value and you will receive a free copy of the CD interview I did with Frank Barbera. In addition, you will find articles that discuss the potential for a new global reserve currency along with the information on formal devaluation of the U.S. dollar and what it means for you. To receive the free information package call Goldline at 1-877-341-2646.

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. 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.

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.