GOLD ABOVE $1,200

Gold reached a high of $1,199.30 this morning on the December contract and reached $1,200.50 on the February contract. Silver reached as high as $18.88 an ounce. In the first half-hour of trading, gold is up $12 and silver up $.29, while the U.S. dollar is down 44 basis points at 74.44 on the dollar index. Oil is up $1.22 and the Dow is up 110 points. This is a dollar story today and as the dollar falls back, gold and other assets that benefit from a weaker dollar are rising.

I told you weeks ago that Barclay's Bank and Goldman Sachs had both raised their year-end forecast for gold to $1,200 an ounce. These are extremely knowledgeable sources and are likely to be proven correct. As we can see know, those targets have essentially been met. Perhaps those analysts who have been forecasting $1,300 by year-end will also be proven to be correct. Nevertheless, with gold at these levels, it certainly has been an excellent performance for investors, not just for this year but also over the past nine years.

One analyst told CNBC this morning that he sees gold making a move to $1,800 fairly quickly. He said once gold gets above $1,500 the move from $1,500 to $1,800 will surprise people by its speed. Investors are accumulating gold as a safe haven asset in the wake of the Dubai debt fears and in anticipation of rising inflation ahead. Moreover, the more sophisticated investors know the problems with the banking industry are far from over. Add in the potential sovereign debt defaults and you have a volatile situation that gives people jitters over any currency other than the ultimate safe haven currency of gold.

Dow Jones Wire Service reported that in overnight electronic trading gold hit as high as $1,200.50. That's an excellent performance as we can see. That same analyst told the Dow Jones Wire Service, "It's a combination of technical buying and ameliorated risk appetite that expressed itself through a lower U.S. dollar and higher equities. The underlying fears for inflation are still here, with market players in confirmation in the third consecutive rate hike in Australia and monetary policy easing in Japan said Carl Johansson."

Many investors are aggressively accumulating gold at these levels in anticipation of a move into the $1,500 to $1,800 range or perhaps substantially higher than that. For example, since October of 2008, Merrill Lynch has been arguing that gold would move to $1,500 an ounce in three stages. They said, "The second stage of gold price appreciation is primarily about U.S. dollar weakness and lack of confidence in fiat currencies, and should drive gold above $1,200 an ounce. The third and final stage will be driven, in our view, by a strong cyclical recovery in energy and commodity prices." They also said, "We estimate that any given increase in physical gold demand of 100 tons could push gold prices up by $45 an ounce. With EM (Emerging Market) FX reserves at nearly $6 trillion, it will not take much to send gold prices higher." They went on to say, "The point of fiat currencies is to de-base them as needed saying we would argue instead that the whole point of having a fiat currency is to be able to de-base it when the economic conditions require it."… We see a third stage of gold price appreciation in the next 18 months where prices push above $1,500 an ounce on the back of higher oil and commodity prices."

Those who have confidence in these forecasts will be accumulating gold at these levels in anticipation of that significant move to the upside. Investors may wish to contact Goldline at 1-877-341-2646 for assistance in accumulating gold and silver assets without delay. Those who would like to learn some of the factors that are causing analysts such as Barclay's, Goldman Sachs, Merrill Lynch and many others to forecast high gold prices should contact Goldline at 1-877-341-2646 for the free information package.

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 on gold investing, call Goldline at 1-877-341-2646. 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 gold information package.