GOLD RISING AGAINST CURRENCIES

Gold started higher reaching $864.60 where it encountered resistance once again. It then sold off on profit taking and in the first half-hour of trading is down $4. Silver on the other hand reached a high of $11.50 and while it pulled back it remains up $.17. The dollar again is higher up 16 basis points at 86 on the dollar index and oil is up $.48 at $41.31 a barrel. The Dow Jones Industrial Average after falling 332 points yesterday has rebounded by 135 points this morning. At the moment what we are seeing is technical selling at resistance.

Once gold gathers enough momentum to decisively push above $862.50, with a couple of days closing at that level, I think you will see it challenge resistance at $885. Analysts said yesterday's big up move was flight to quality buying on concerns about the banking sector and sagging equities. It was a positive performance yesterday for gold in that it rose even though the dollar was up 163 basis points. If you look at the gold market versus the dollar you will see the last time the dollar was this high, gold was substantially lower. This suggests not only is gold rising in terms of dollars, but also it is putting in a rather spectacular performance.

Gold is rising even more in terms of other currencies. In fact, almost every currency in the world is falling against gold, meaning gold is rising even more in other countries. Gold made a new record high in Britian, Canada and New Zealand. When you see a market performing like this it is giving a "buy" signal and it indicates that over time the dollar cannot hold these lofty levels. It will certainly have to come down from this parabolic rise. When it does, it may fall aggressively and very rapidly. That would ignite a surge of demand for gold, perhaps unlike anything we've seen before.

Dow Jones Wire Service said, "The focus remains on the same factors that have underpinned the metal (gold) lately – worries about whether currencies such as the dollar, euro and sterling will hold their value. People are scared about this bank stuff. Money is not all going into the yen. It's going into gold." Alex Manzara of TJM Investments told his clients in an e-mail that the ailing banking sector means that gold "may once again take its status as the ultimate safe haven." David Rosenberg of Merrill Lynch said yesterday that the supply of money in all major countries is expanding aggressively, while the supply of gold is the declining. He said this is a formula for much higher gold prices. Gold Fields Mineral Services in their annual report said they think gold will continue to be underpinned by safe haven demand also. They forecast gold reaching a high of $1,080 this year. Merrill Lynch's analyst thinks gold will be at $1,050 before June. The editors of Barron's Magazine are forecasting gold over $1,200 before year-end. UBS Bank said this morning that they have lifted their one-month forecast for gold to $900 an ounce.

These analysts are very prominent and certainly have great credibility. Therefore, it makes sense to pay attention to some of the comments that they make. Clearly, given the performance in the equity market it looks like gold will outperform equities, treasuries, CDs, and pretty much any other kind of investment you can think of. Morgan Stanley thinks that the average price of gold will rise considerably expecting the average over the course of the year to be $900, with a rally above $1,000 highly likely. They think the average price next year will be over $1,000. That indicates a spike much higher. All of this bullish news should be factored into your decision making process. You should also be considering whether the equity market can perform given the severe problems in the economy.

Yesterday, many of the major bank stocks fell aggressively. In round numbers the big losers were Bank of America down 29%; Citibank down 20%; Goldman Sachs down 19%; JP Morgan down 21%; and Wells Fargo down 24%. Investors are turning to gold for safety, as they are concerned about the survivability of some of these big banks. There is also this concept that is beginning to gain supporters of creating a national bank that buys up all of the "bad debt" of the commercial banks. This would be a problematic situation.

To learn more about these concepts and the potential for dollar devaluation and higher gold prices from some of the major analysts in the business, call Goldline and ask for the free information package. It contains articles quoting these analysts and providing you information you would not otherwise have available. Goldline will also provide you with a free copy of the interview of Peter Grandich. You will find that very informative as he provides his forecast for the year. If you would like to get started with gold, ask Goldline to assist you. You can put gold and silver into your IRA accounts and 401(K) rollover accounts. Ask them about special offers such as Goldline's Price Guarantee Program, which provides you with a two-week window of opportunity to re-price your transaction in the event of a correction. This is not available with all assets, so ask about it. Call Goldline today at 1-877-341-2646.

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. 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 1-877-341-2646now to receive your free information package.