GOLD IN THREE-WEEK UPTREND

Gold started the day lower, but quickly rallied back to unchanged levels while silver was trading down $.13. Most of that can be attributed to a stronger dollar, up 22 basis points to 82.75. Oil is lower, down $1.15 at $57.84 a barrel and the Dow Industrials got off to a poor start, down 141 points at 8,434.

Technical analysts are pointing out the fact that gold is gaining momentum to the upside. They point to gold having broken out above the ten-week old down trend line on the Daily Bar Chart and that prices are now in a three-week up trend. Also, they point to fresh near term technical momentum. They stated that the next upside technical objective is for gold to push through resistance at $938. A close above that level would provide the bulls with better upside opportunity suggesting a challenge of major psychological resistance at $1,000 an ounce, or above. Silver investors should note that funds were significant buyers last week. This would suggest that their appetite for silver is increasing.

Looking at some of the fundamentals driving gold, there are a growing number of analysts who believe that the bailout fixes by the Federal government are not going to work. There is a good deal of evidence to suggest that those programs that have been put in place to date have been failures. For example, Fannie Mae reported that they need another $19 billion in USA after a $23 billion first quarter loss. They are asking for $19 billion on top of the $15 billion government bailout they got in March. They say they may need even more money and won't be profitable for the foreseeable future. This is the entity that the Federal government is hoping will stabilize the real estate market and help make more loans. Peter Wallison, a senior fellow at the American Enterprise Institute said their losses could potentially exceed the governments $400 billion lifeline. Between Fannie Mae and Freddie Mac, they own or guarantee almost 31 million home loans worth about $5.5 trillion. That's about half of all U.S. home mortgages.

To make matters worse, they said even loans to low-risk borrowers have begun to experience increases in delinquency and default rates as a result of the sharp rise in unemployment, the continued decline in home prices and the long economic downturn. Fannie Mae now has $145 billion in delinquent loans on its books, more than ten times the amount from last year. In addition, Fannie owns 62,000 foreclosed properties. This is an unmitigated disaster and certainly is not the organization that's going to rescue the housing market.

Axel Merck said today that the actions being taken by the Federal government are a replay of the actions taken by Japan, which lead to a 20-year recession. Bolder actions are needed and a further stimulus package is going to be required. The result of this massive spending, more stimulus and all of these other crazy things that are going on will lead to rising inflation ahead.

Today the White House raised their fiscal 2009/2010 deficit projections. They believe the deficit this year will be $1.841 trillion, $89 billion larger than previously expected. For next year, they are predicting a deficit to be $1.258 trillion. Between the two, we are talking about $3 trillion added to the national debt. That would bring our debt to $14 trillion. I suspect that before next year is over, these deficits will have expanded considerably. The deficit is now expected to reach 12.9% of GDP this year, a level not seen since World War II. Moreover, the White House said they expect accumulated deficits of $7.1 trillion over the coming decade. Can you image our country having a $18.3 trillion debt? I simply think it will lead to the collapse of the dollar. Axel Merck was saying essentially the same thing this morning. In his opinion the dollar will collapse as a result of the massive deficits and to make matters worse, he believes that the efforts thus far will be a total failure.

These are substantial reasons to own gold. The best way to protect against inflation is to have some diversification into gold assets. Clearly, the imperative to own gold is increasing. Investors should call Goldline at 1-877-341-2646 and get started with diversifying their portfolios with gold. You should also ask whether you have a sufficient diversification to meet your needs. If not, add to you holdings. Ask Goldline about Swiss 20 Francs, American Eagles, Maple Leafs, British Sovereigns, gold Double Eagles, or other forms of gold that may suit your personal and individual investing needs. Ask Goldline about their Price Guarantee Program, which provides a two-week window of opportunity to re-price your order in the event of a correction. These are all benefits that are provided by Goldline for their investors. Call Goldline now at 1-877-341-2646.

You should also ask for the free information package, which has articles that will help to better inform you as to the developments that are going on with regard to the financial crisis and the efforts of government to move us out of that crisis. You will note that there are articles that discuss replacing the dollar as the world's reserve currency with some other form of money. You will also receive articles talking about formal devaluation of the dollar. All of these issues are extremely important to those who have accumulated some wealth. In addition, you will see forecasts from major analysts and brokers who are highly regarded, giving their forecasts for the price of precious metals over the next year or two. Call Goldline now at 1-877-341-2646 for 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.

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.