GOLD STEADY - DOLLAR HIGHER

Gold was lower before the open, but came back to unchanged shortly thereafter and silver is down $.15. The dollar is soaring again, up 47 basis points at 75.76. Gold is holding in spite of the rally in the dollar and that is indicative of the fact that people are holding gold because they believe that it is the best form of money. In fact, listening to CNBC this morning, I heard one stock fund analyst saying that their fund had 15% diversified into physical gold bars. He said they held the gold because they feel it is the best form of currency. He said almost all central banks are pursuing easy money policies and therefore there is no form of money that is as attractive as gold. We also know that gold is an effective preservation of wealth asset and that it is an asset that can be converted into any currency in the world with ease.

The most interesting thing that I continue to hear analysts discussing on the financial television stations is that they feel gold is a good diversifier for their equity holdings.

With interest rates in the U.S. essentially at zero, there is no advantage to holding liquid assets in treasuries or other forms of cash. With gold, investors have an opportunity for gains that outperform the negligible yield on treasuries or money market funds. Moreover, the most sophisticated investors in the world such as John Paulsen, David Einhorn, and many other sophisticated market analysts and investors like Jim Rogers, are all moving into gold very aggressively even at these levels and expected to reach net buying of 30 tons. Central banks are buying gold at market levels. The demand for gold from central banks is at record levels. Central banks have not been net buyers of gold in over 20 years. Therefore, this is a major shift in sentiment. Once again, central banks are holding gold as a replacement for the dollar.

While some analysts think that a correction is overdue in the precious metal sector, most believe it will be short-lived and prices will continue higher very quickly. Forecasts of $1,200 by year-end are now commonplace. HSBC has joined those along with Commerz Bank and others who think that gold will reach $1,200 quickly, perhaps by the end of the year. Next year, analysts are forecasting prices from $1,500 to $2,000. In my view, the fact that John Paulsen is starting a new gold fund that launches on January 1st and that he is putting $250 million of his own money into that fund, is indicative of the expectation that gold will rise dramatically over the coming years.

Dow Jones Wire Service reported that Société Générale's Dylan Grice is arguing that gold prices could ramp up to $6,300 or more within the decade, and possibly over the coming few years. GFMS this morning forecast that silver demand might push the price of silver over $20 an ounce in the short-term.

Given all of the factors that are supportive of gold and silver assets over the near-term and especially the longer-term, it makes sense to have some diversification into gold. When traditional stock mutual funds are diversifying their holdings with gold, it should be an indicator to all investors that it makes sense to have some money in gold. Goldline has been in business for nearly 50 years serving investors who wish to own gold and silver assets. Call Goldline today at 1-877-341-2646 for assistance getting started or adding to your holdings. Goldline offers a free gold investor information package, which contains excellent articles from major banks and brokerage firm analysts, along with information that should be interesting and helpful to all investors. Call Goldline at 1-877-341-2646 to receive your free information package.

Investors should 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. 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 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 decision. Call Goldline at1-877-341-2646 now to receive your free gold investors package.