GOLD STEADY

Gold fell back overnight, dropping to a low of $1,098.10 before rebounding quite nicely. Early, after the start of trading this morning, gold is only down $2 and silver is up $.10. Gold fell back as the IMF announced late yesterday afternoon that they intend to sell the remaining 191 tons of their allocation in the open market. Those who are unsophisticated viewed that as a negative. I think it was really a non-event and the markets are proving me to be correct. The IMF must sell that gold pursuant to the so-called Washington Gold Sales Agreement. That agreement has been in effect for over eight years enabling countries that participate to sell 400 tons of gold per year. That is a relatively small amount of gold coming into the market. Still, they only sold 40 tons. This year it appears that central banks will be net buyers rather than sellers. Consequently, moving 191 tons of gold through the market is really a non-event.

In addition, there may have been central bank or institutional buying that rallied the market. Managed funds and others who are sophisticated may have bought into this market. Remember the most sophisticated traders in the world, people like George Soros, John Paulsen, David Einhorn, Jim Rogers, Bank of America, Black Rock Capital, (all of these individuals who have been enormously successfully) have purchased huge quantities of gold. George Soros doubled his gold holdings to almost $9 billion last year. He is now the fourth largest holder of the paper gold trust behind Bank of America, Paulsen & Company, and Black Rock. These are enormous names that really know what they are doing. In my view we should be following what those most successful investors do, rather than the novices who claim to be experts on TV.

While gold has been performing well here in the United States, it has been doing even better in Europe and some other parts of the world. Gold has been trading near record highs in terms of euros and British pounds. Concerns about Greece's debt problem and worries of contagion in Portugal, Spain or even Italy are prominent in the market. Remember, European banks are heavily exposed to the sovereign debt of these countries. If any of them were to default it would lead to another extraordinary crisis in the financial and banking system.

Moreover, if you look at inflation rates around the globe, inflation is beginning to make an upward move. The PPI rose 4.6% in the twelve months ending 1-10-10, the highest increase since January 2008. We will get some CPI numbers in the next few days however, the consensus of analysts reported today is that inflation will register a .3% gain for the month of January. If you annualize that that's 3.6%. When you keep your money in the bank earning 1%, while inflation is 4.6%, it means you are losing 3.6% of your buying power per year. When you take into consideration tax consequences it's even worse. That's one of the reasons that many investors are turning to gold and silver as an alternative to cash. Moreover, metals have an outstanding record of maintaining and preserving wealth and purchasing power over lengthy periods of time. All of these are excellent reasons to acquire gold or silver today. Call Goldline today at 1-877-341-2646 to get started.

The fact that gold is showing tremendous strength in the face of what might be considered adverse news is very bullish. I think that the strength that is being demonstrated in gold is extraordinary. Remember, you have major banks forecasting gold to rise to $1,300 to $1,500 an ounce before the year is over. Just in the past couple of weeks Goldman Sachs raised its 12-month forecast to $1,380 a troy ounce. These are among the most knowledgeable individuals in the entire world when it comes to markets and geopolitical events. I think their forecasts are reasonable expectations for today's investors. If Goldman Sachs is correct, gold would post a gain of 23% for the year. Call Goldline today at 1-877-341-2646 to acquire gold so that you can participate in this long-term bull market.

You should also ask the folks at Goldline to explain their Price Guarantee Program. This program has proven to be very valuable for many of their investors. Also ask for the free information package, which contains excellent articles and information from major banks and brokerage firms. In addition, it is important to note that the January Producer Price Index rose 1.4% as a result largely of higher energy prices. Since that time, energy prices have gone even higher. If you annualized the January number, it would demonstrate inflation in excess of 16% annually. These are among the reasons that investors should consider diversifying a small portion of their portfolio into gold and silver. Call Goldline at 1-877-341-2646 to get started today.

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 investing, 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 investors package.