GOLD REMAINS IN BULL MARKET

Gold and silver are both down this morning, but they bounced nicely off the lows, showing some strength in spite of the fact that oil is down nearly $3, trading at $64.00 a barrel. The dollar is also firmer, up 28 points at 80.66, while gold is trading at 924.50 on the key futures contract. Silver dipped below $13, but has bounced back up to $13.19 an ounce on the futures. The equity market is also lower.

The dollar firmed up today because the Russian President said that for the moment there is no real alternative to the dollar. The big issue will be whether discussions of a new global reserve currency are put on the agenda of the G8 meeting later this week. China has requested that this be a topic for consideration. Commodities in general are in a correction mode as they are reacting to the dollar. Firmness of the dollar has influenced all of the commodity markets.

We also have reports of worries about slumping demand for oil and copper as the economy in the U.S. seems to be worse than had been previously thought. All of this talk about "green shoots" is now being discounted as unemployment is rising and there is little evidence on the street of significant improvement in the U.S. or global economies. Some analysts also think worries about the equity market and the economy is driving money into the dollar as a safe haven asset rather than gold. I am somewhat skeptical of the logic of that; however, that seems to be a general sentiment among analysts. Another factor that could be influencing gold is that the Indian government is raising the country's import tax on gold products. That may reduce some of the Indian demand. John Reade of UBS Bank said he thinks this will have just a small affect on overall Indian gold demand this year. If this tax has any impact, it may ignite more smuggling of gold into the country.

Some analysts now think gold could trade lower to test $905 or perhaps even $900. However, if the market finds support above the $920 level and holds there, then we probably don't have to worry about gold going significantly lower. In any event, gold remains very bullish at these levels and would be bullish even if there were a deeper correction into the $875 level.

Investors who would like to take advantage of this opportunity to acquire gold at bargain basement prices should call Goldline at 1-877-341-2646. You may wish to consider using Goldline's Price Guarantee Program. That program provides you a two-week window of opportunity to re-price your transaction to get more gold for your money, in the event of a further correction. Providing encouragement to utilize this correction as a buying opportunity are the comments from Standard Charter, which told Dow Jones News Wire that despite some negative sentiment gold should still trend higher. They stated, "While gold has been knocked back from its recent high, we believe that prices will still trend higher through the remainder of this year. Gold's correlation with the USD has become closer in recent weeks, and a substantially weaker dollar in the second half of '09 will underpin our view." They believe that gold will eventually move to $1,050 by the fourth quarter of this year. These are positive statements by prominent analysts and certainly give plenty of reason to think that is clearly a buying opportunity at these levels.

Another key factor is with the economy not showing much strength, it is likely that quantitative easing will continue. In other words, the Fed will continue to print money at unprecedented rates, which ultimately will depreciate the value of the dollar. Others are recognizing this fact and acting on it. For example, Saudi Arabia announced that it is now considering buying large amounts of U.S. real estate at bargain prices. This is evidence that they prefer to hold land rather than dollars. It looks like many countries are trying to unload dollars for real assets in any way they can. Some are buying gold, others real estate, others companies, and for many a combination of all of these different kinds of assets. These are warning signals that a day of reckoning for the dollar is ahead. You do not want to be caught unprepared when that day occurs. That is why smart investors are diversifying into inflation hedge assets now. As an investor you need to be looking forward, not backward. You need to anticipate the events that will be occurring down the road. Position yourself now for a weakening dollar and higher inflation rates. Call Goldline at 1-877-341-2646 to get started with your gold diversification to protect the value of your accumulated wealth.

Moreover, you should ask Goldline for the free information package, which contains articles that explain these developments and help you to understand how best to prepare yourself for the events that will materialize over the coming years. Call Goldline now at 1-877-341-2646 for your free information package.

Investors should ask Goldline 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, 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 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.

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-877-376-2643.

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