GOLD MOVES ABOVE $1,000 AN OUNCE

Gold reached as high as $1,002.30 an ounce this morning before easing back on profit taking. Gold is currently trading up $13.50, above $990 an ounce. The dollar is up 58 basis points at 88.02 and oil is down $2.03 at $37.45 a barrel. The performance of gold and silver is reflective of a flight to safety. The equity market is softer with the Dow hitting a low of 7,327 before rebounding. It is currently down 49 at 7,417. As I have repeatedly warned, a break below the 7,500 level was a significant breakdown in the market and could foretell much greater losses ahead. Silver reached a high of $14.55 this morning and is currently trading at $14.39 in the futures, up $.46.

Clearly, the fear factor is at play with the world economy continuing to sink into a black hole. In Europe, the Eastern European countries are experiencing bank losses that are in some instances more than the entire GDP of the country. These smaller Eastern European countries cannot rescue their banks. Sovereign defaults are on the horizon. It will be up to the European Union of Western European countries to determine whether they wish to bailout these other countries or suffer the fallout. Since Western European banks are tied up in the problem, I suspect that sooner or later they will be forced to come up with some kind of a bailout for the Eastern European countries. However, if they fail to do so, and if an accident occurs, it could have global repercussions for the banking system of epic proportions. Do not overlook the fact that it was the failure of Credite Einstadt in Austria that caused the collapse of the global financial system in the 1930s.

When you look at the banks in the U.S., you see the cost of credit defaults swaps on Bank of America bonds at all time record highs. The cost of insuring most of the major U.S. banks in the U.S. against default on their bonds has been skyrocketing. In fact, even the cost of insuring against default on U.S. government debt has been rising to extraordinary levels. This is the reason why we see so much money piling into the gold market. Gold has now moved above $1,000 an ounce, and while it pulled back on profit taking it is likely to continue to post extraordinary gains over the next few months as the crisis seems to elude solutions. Everything bailout tried doesn't seem to have much of an impact on stopping the financial market from skidding.

One analyst told the Dow Jones Wire Service that other than gold "there is really no other place to go." Analyst John Nadler said, "Global investors appear to have just opened the doors to a den full of hungry, cranky, and no longer hibernating bears. How scary is that? Scary enough to send anyone with whatever cash they had left into the one part of the global cave that feel relatively safe from a mauling at the moment: gold and the dollar."

Investors can't say they haven't been warned. Unfortunately, most have been ignoring these warnings. Most investors continue to hold stocks and stock mutual funds even though they have sustained devastating losses. Unfortunately, the losses continue to grow. Those who are properly diversified by owning some gold or silver have been insulated from at least a portion of those losses. And perhaps even more important, those who have moved into the precious metal sector are those who have had better information, who have made more objective decisions about their investments. In many instances, these investors have either reduced or eliminated their exposure to equities and funds.

Many now expect gold to make a new all-time record high above the previous $1,030 level. For example, the editors of Barron's Magazine have forecast gold will hit $1,200 this year. Merrill Lynch's analyst said that gold is a no brainer and that they expect gold to reach $1,150 before June. Goldman Sachs a month ago forecast that gold would rise above $1,000 within 30 days and they've been correct. Citibank says gold might even reach a high of $2,000 an ounce before the year is over.

Therefore, the upside potential remains solid in the gold market. Do not overlook the fact that there will likely be corrections along the way. Some of these corrections could be significant. However, in a bull market of epic proportions such as we are witnessing now in the metals, it makes sense to buy the dips and to hold for the longer term. When we hear persistent talk about formal dollar devaluation, it becomes important to guard against that. This morning on CNBC, analysts were again talking about dollar devaluation. Devaluation of the dollar or its replacement as the world's reserve currency could have important consequences for gold, driving it to extraordinary levels. Merrill Lynch even used the reference that gold would not be in a "topping" or "bubble" process until you saw one share of the Dow equaling one ounce of gold. They suggested the price of $6,000 an ounce.

If you would like to read the entire Merrill Lynch quote, call Goldline at 1-877-341-2646 for the free information package. In addition, Goldline is offering a free CD interviewing Frank Barbera, a well-known market analyst and money manager. He makes his living off of providing information and advice. You have the benefit of getting his advice and information for free simply by calling Goldline at 1-877-341-2646. There are also articles from a number of other major analysts including an article from Forbes.com in which they are discussing the possibility of formal devaluation of the dollar. All of these articles and the CD are important to read, along with the Risk Disclosure Booklet and the company brochure.

If you decide you are ready to get started with gold and you probably should not wait to do so, call Goldline at 1-877-341-2646 for assistance in getting started with gold or silver investments. They are happy to offer you a special that enables you to either have a choice of free shipping or utilization of Goldline's Price Guarantee Program. You can ask about the details of those special offers. You may also wish to ask about diversifying with Austrian Ducat coins or other forms of gold or silver that have features and benefits in addition to those offered by bullion assets. Call Goldline at 1-877-341-2646 to get the free information package or to get started with gold today.

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 and how you may be able to receive free coins.

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.