GOLD COULD RISE OVER $2,500

Gold is up $7 and silver is up $.18 in early trading, while the dollar is down 26 basis points at 87.40. Oil continues to improve trading up $.17 at $47.18 a barrel, after reaching a high of $48.14. It is widely expected that the OPEC partners will agree to further cuts in oil production when they meet on Sunday. Analysts told Dow Jones Wire Service that gold has been helped by "fund buying" early in trading today. Although there is less safe haven demand for gold, people are starting to look down the road and anticipate a weaker dollar and higher inflation rates.

Today, the Chinese President sort of wagged his finger at the U.S. government demanding assurance that the money it has invested in U.S. treasuries will be safe. They probably have already decided it is not safe and will be looking towards some form of collateralization. Could this be pointing the world towards a new Bretton Woods Agreement? It is certainly possible. There has been a great deal of talk about returning to some form of gold backing for the reserve currency. Some, such as the economists at the United Nations, have recommended that a new reserve currency be established. However, the greater likelihood would be that the U.S. would be forced to back the dollar in foreign transactions with gold. Domestically, we would have no gold backing for our money. It would only be government to government, which was the case under the Bretton Woods Agreement.

You may recall late last year there were a number of calls by the G20 nations for a new Bretton Woods Agreement. They are supposed to have this issue on the agenda when they meet in April. The fact that UBS Bank is forecasting $2,500 an ounce gold in the next five years and stating in their special report that if the dollar were backed by gold again, the price of gold would have to be $6,948 an ounce. They also pointed out that if China and Japan joined this gold agreement the price of gold would have to be $10,000 an ounce.I assume that is because we owe those two countries so much money.

The precious metals markets are also seeing a new demand for gold by central banks. The very fact that China is asking the U.S. government for some assurance that their treasuries are safe is a significant event and portends greater pressure on the dollar. In a way, it is also a threat to not allow the dollar to decline too far or too rapidly. The era of competitive currency devaluation is beginning to be exposed to the light of day. While competitive currency devaluation has been going on for several years, it is now coming out into the open. Yesterday the Swiss National Bank announced it would intervene in the currency market to limit the appreciation of the Swiss Franc. By weakening the Franc, a traditional safe haven, the Swiss Bank has bolstered gold's appeal since it is actually a preferred safe haven asset.

While gold is seeing some pressure from a firming equity market and less safe haven demand, those who have the ability to look a little bit longer term are realizing they need to have some gold in their portfolio for protection against the falling dollar and rising inflation pressures. Consequently, demand remains strong particularly for physical gold. We have seen a number of articles including the most recent Newsweek Magazine where they express that wealthy individuals who are very well informed and sophisticated are buying physical gold and sticking it in their safe deposit box because they want the ultimate form of safety against the destruction of the dollar. As I have said so many times, if middle-income investors would take some of the same steps that the very wealthy and highly informed individuals take, they would be better positioned to protect their wealth and enjoy greater gains.

In this environment, I believe investors should have some diversification into precious metals assets. As Goldline's Risk and Disclosure booklet says, somewhere between 5% and 20% is appropriate for most investors. However, most investors either have no gold or are extremely underweight gold. Therefore, while gold remains bargain priced at under $1,000 an ounce, investors should act at once to acquire gold. Call Goldline today at 1-877-341-2646 for assistance in getting started with gold for your portfolio. You may wish to ask Goldline about the Price Guarantee Program, which provides a two-week window of opportunity to re-price your transaction to get more gold or silver for your money in the event of a correction. Check with Goldline to see if your transaction will qualify for that special benefit.

You should also ask for the free information package, which will include the latest articles quoting UBS Bank, forecasting gold to rise to $2,500 an ounce with the potential to rise to near $7,000. These are knowledgeable economists and financial analysts who are making these forecasts. In addition, on a shorter-term basis over the coming three years, Merrill Lynch is forecasting gold at $1,600 an ounce. You should read their comments as well, which are in the free information package. If you tell Goldline Joe said to call, they will give you a free copy of the CD interview I did with Frank Barbera and a free copy of the American Advisor Newsletter, which has a $99 a year value. Call Goldline at 1-877-341-2646 now 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. 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.