GOLD - AN IMPORTANT MONETARY ASSET

Gold is up $7.50 this morning and silver is up $.32 in early trading. The metals are reacting to a number of factors including a softer dollar, down 23 basis points at 83.93. Analysts such as the Aden Sisters are saying if the dollar closes below 84 on a sustained basis for a couple of days, it will probably be entering a major down leg that could carry it perhaps back down into the 70's. Oil is also higher, reacting to a weaker dollar. Oil is up $1.54 at $55.38 a barrel. Higher oil prices, a weaker dollar, and massive inflationary stimulus by the government is likely to lead to rising inflation over the next eighteen months or more. As that occurs it will be a bullish development for the precious metals markets.

Tomorrow, the results of the stress test on the banks will be announced. While the details are largely unknown, apparently Bank of America may have to raise more than $34 billion. The rumor is that B of A will have to raise more money than Citibank ($10 billion). If the rumors are correct and 10 out of the 19 banks are short of capital, it could produce another safe haven bid for the gold market.

In addition, the Gulf Cooperation Council, which is developing a unified currency for the Middle East oil producers, is considering a role for gold in any future single currency, said Mark Chandler, the Global Head of Foreign Exchange Strategy at Brown Brothers Harriman. He stated, "Reports suggest that there has been some internal discussion of the role for gold within a basket of currencies and commodities." If this proves to be the case it would substantially increase the demand for gold and would constitute a major plus for the gold market. The very fact that it is being discussed is proof that gold is again being regarded as an important monetary asset. In all likelihood, other central banks are likewise considering adding significant amounts of gold to their reserves. Yesterday, we saw some commentary that the Chinese government is still aggressively buying gold. Other countries in Asia will follow suit, as they like to maintain a certain ratio in their reserves that would be at least consistent with what China does.

For the moment, gold still remains trapped within an $850 to $950 trading range. However, the bias has now turned to the upside. Gold this morning has broken out above another near-term resistance level, between $909 and $910. If it can close above $910 on the nearby futures contract, then it is likely that gold will rise to test $934. A break above $934 would likely lead to a test of $950. Some analysts say that a break above $934 will lead to a test of $1,000. An analyst for Standard Bank said if Bernanke's comments that the recession could be over by the end of the year prove true, that "gold investors must shift from buying gold as a safe haven into buying gold as an inflation hedge."

It is this recognization that massive monetary stimulus and unprecedented government debt are the factors that are likely to produce not just an ordinary inflation, but an inflation at least as serious as what was seen in the 1970s and perhaps worse. George Gero of RBC Capital told the Dow Jones Wire Service, "If we breach $930 on the upside, I think we're going to have a lot of momentum traders and funds coming in". Silver also should perform quite well in this environment.

Given the developments of the last several weeks, it would appear to be a wise move for investors to diversify into gold without delay. Call Goldline today at 1-877-341-2646 to learn more about investing in gold and silver assets. Ask them about their Price Guarantee Program. It is a helpful program for those who can qualify. Ask Goldline to explain the features, benefits and cost structure of the various gold and silver assets available to you. Also, ask for the free information package, which contains some fantastic articles that you will find very informative. You should read about the calls for the development for a new global reserve currency and the devaluation of the U.S. dollar. Listen to the free CD where I recently interviewed Frank Barbera. You will find his work is outstanding. You will also receive a free copy of the American Advisor Newsletter, a $25 value. Call Goldline at 1-877-341-2646 now to get 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.

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.