GOLD RALLIES

Gold and silver are up nicely this morning with gold gaining $5 in early trading. Silver is up over $.13. Analysts said that the metals rose on bargain hunting. There has also been strong demand for physical gold in China and other parts of Asia, ahead of the Asia Lunar New Year holiday. A weaker dollar is further boosting gold. The dollar is down 21 basis points. This may be due to the release of the President's budget for 2011, which shows a deficit of $1.6 trillion in 2010 and $1.3 trillion in 2011. This is the largest deficit as a percentage of GDP since World War II. It further indicates that the country is headed for a deficit crisis. There is only so much debt that any country can accumulate. Professors Reinhardt and Rogoff in their recent book indicate that the U.S. is now approaching the point of no return. They say we are headed for a sovereign debt crisis that will throw the economy for a massive tailspin.

Barclay's Capital said gold has held ground impressively while most commodity markets were under severe pressure last week. Technical analysts note that gold held above the December low of $1,075 and above the 15-month trend line support at $1,069. Moreover, gold is now oversold according to their analysts. In view of those observations, it would appear that gold is likely to extend its gains back up to a challenge of $1,100.

The ISM January Manufacturing Index showed some improvement. It was the highest since 2004. Moreover, the President's budget now projects a growth in the Consumer Price Index of 1.9% for 2010 and 1.5% for 2011. With a massive accumulation of debt, those numbers seem to be grossly understated. They also forecast a jobless rate of 9.2% and GDP growth of 2.7%. Presidents' budgets always make unrealistic projections. They forecast too much spending and not enough income with a result that the deficits continue to grow way beyond what has been forecast. This is part of a budgetary process in our country that leads us down a negative path. Money is spent on the basis of wishes and hopes for future growth rather than reality.

Those who would like to take advantage of these bargain-basement prices on gold may wish to call Goldline at 1-877-341-2646 and ask about their Price Guarantee Program. That program provides you a window of opportunity to re-price your order in the event of a correction. Ask them to explain the details to you. Be sure you also ask for the free information package, which contains helpful information. It includes forecasts from BofA/Merrill Lynch, Goldman Sachs and others. It also includes a free American Advisor Newsletter -- a $25 value -- and a free CD interview with Philip Klapwijk who has been the most successful forecaster of precious metals values in the business. Call Goldline at 1-877-341-2646 to get the CD and listen to his observations and forecasts.

Ask Goldline to explain the features, benefits and cost structure of the various gold and silver products that are available. Select those that best meet your own personal and individual needs and objectives. Those looking for low transaction costs may wish to consider bullion assets such as American Eagles, Swiss 20 Francs, 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 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, 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.