GOLD: INVESTMENT INSURANCE

Gold reached as high as $932.40 in the overnight markets, but then eased back to about unchanged levels shortly after the New York market opened. Silver reached as high as $13.37, but then fell back to a $.05 loss in early trading. The dollar is down 10 basis points at 80.35, as many are worried that the Fed will not be able to sell all of the debt that is being issued in the credit markets. If they can't sell the government debt, then the Fed will have to buy that debt or print money to cover the expenses. That will be significant, indicating that inflation and the falling dollar would begin to emerge more significantly. Oil is down about $.50 at $63.56 a barrel after being as high as $64.91. Equities are also lower as investors can't seem to generate any enthusiasm for markets in general. The Dow is down 40 points.

Overnight, gold was higher as a result of the fact that oil was higher and the dollar was lower. However, during the summer doldrums and during a corrective process, you often see churning and trading up and down within a well defined trading range, which is apparently what we are seeing now in most of the markets. I think the markets are kind of "on hold" awaiting the developments from the G8 meeting. Many are wondering whether the issue of a new global reserve currency will in fact be on the agenda. Whether it is or not, I think that ultimately the world is headed towards some new form of global reserve currency.

When we look at the United States government's debt it is equal to more than 80% of annual GDP. That is a wildly unsustainable level of debt. Other countries in the G8, notably, Italy, Japan, India, France, Germany and Canada, all have comparable debt to GDP ratios even though their debt isn't as large as ours. Consequently, all of these countries could benefit from devaluation of the dollar, which would result largely in devaluation or decline in their debt obligations. It would also result in higher tax revenues for all of these countries.

Therefore, some form of global coordinated devaluation of currencies may be the most convenient and most palatable option for all of the G8 countries with possible exception of China. Some of these G8 countries have been significantly reducing their dollar holdings. If there is formal devaluation across the board, then all of their debts would be devalued but they may not take as much loss in terms of their dollar holdings because they shifted a lot of those dollar holdings to hard assets, including gold and other commodities.

Meanwhile, the politicians "talk up" the dollar to give them the opportunity to move out of their dollar holdings. This is similar to corporate executives telling you how great their company is and how prosperous it is, while at the same time selling their own stocks in the company.

Yesterday, Standard Chartered Bank indicated they believe gold will average $975 an ounce this quarter, and it will average $1,050 in the fourth quarter. In order to achieve those average prices, we would have to see gold dramatically higher at the high due to the fact that it needs to compensate for lower gold prices through the earlier part of the year. Consequently, gold and silver both present outstanding buying opportunities at these levels. Neil Schmidt said that in coming years, gold under $1,000 will be seen as the bargain of a lifetime.

Another factor giving rise to significant demand for gold is the issues of social and political crisis that result from the economic problems. The World Trade Organization said today that the worst social and political effects of the economic crisis are still to come. In addition, we now have a number of economists in the real estate sector saying that real estate prices may continue to fall through 2011 and perhaps into 2012. If so, the banks are going to see another significant rash of foreclosures and the banking crisis will flare up once again.

All of these factors are certainly reasons to own gold and silver as a method of preserving and protecting wealth over the long term. Gold is often referred to as "investment insurance." That is among the reasons why it makes sense to own some gold as part of your overall holdings. Call Goldline today at 1-877-341-2646 for assistance in adding gold or silver to your personal portfolio. Ask them about their Price Guarantee Program, which provides you a two-week window of opportunity to re-price your order in the event of a correction. You should also ask for a free information package as it contains excellent articles and information concerning these crisis, the dollar and precious metals. All of the information will be pertinent and helpful in a number of different respects. You may also have a choice between a free CD or DVD that you would find helpful and informative. Call Goldline at 1-877-341-2646 to receive your 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 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 a purchase. Call Goldline at 1-877-341-2646 now to receive your free information package.