GREECE'S CREDIT RATING DOWNGRADED

Greece's sovereign debt was downgraded this morning by a credit rating agency indicating that it is a country that could default on its debt obligations. Moody's sees a potential for a credit downgrade of UK and U.S. debt, if their deficits are not cut. The nervousness over that and worries about the country of Dubai liquidating some of its collateralized mortgage obligation bonds, spooked the markets and caused money to move back into the dollar and out of other assets. The dollar rose 18 basis points to 75.94, pushing gold down $17, silver down $.43, oil down $1.10 and the Dow Industrials down 115 points.

Tom Pawlicki of MFGlobal said, "It seems to be a stronger dollar and also follow through from Friday's sell off, that is responsible for this mornings continued dip in the gold market." Moreover, yesterday's statements by Ben Bernanke that the economy is not as strong as some think and that it remains weak, therefore rates will not rise for an "extended time" also weakened the equity market and strengthened the dollar. With Dubai's leaders dragging their feet on whether to rescue Dubai World, Moody's downgraded the government related debt. A lot of people in the financial sector are nervous that Dubai has a lot of collateralized mortgage bonds and may be forced to sell them at fire sale prices. In other words, this could create a re-play of what we saw during the financial crisis with Lehman Brothers and other banks that were put into a fire sale position. Nevertheless, Pawlicki put nearby chart support for February gold at Monday's low of $1,136.10, then $1,100. Thus far, gold has not slipped to those levels and seems to be demonstrating strength in the $1,142 to $1,146 range.

Morgan Stanley said this morning, "We remain confident that downward risks of the gold price and the current environment are limited with buying on dips likely to come from emerging market central banks and private emerging market consumers and investors." Several analysts on CNBC this morning were commenting that they are looking for the opportunity to acquire gold on the dip. Most of the analysts seem to think that gold is very bullish long-term and that this correction and consolidation simply provides a great buying opportunity. Investors should be aware that there is a lot of year-end book squaring and profit-taking going on, which is influencing gold and other markets. That kind of trading activity where traders lock in gains to enable them to earn a bonus is the kind of situation that creates opportunities for those who are looking to acquire gold for its long-term benefits, such a purchasing power protection and inflation protection and as a insurance against the potential for further crisis to emerge down the road.

Clearly, the dollar rally cannot last long. The U.S.government has enormous amounts of debt and the debt keeps growing. There seems to be no possibility of reducing the debt and deficits anytime soon. In fact, many are worried that like Greece, the U.S. government could end up having its credit rating reduced.

HSBC and Morgan Stanley raised their 2010 gold average forecast. HSBC raised their average forecast 21% to $1,150 an ounce. These banks are extremely conservative. When they site an average forecast that would include peaks and valleys. Therefore it would be reasonable to assume that their estimate would probably be for a high above the $1,150 range, probably into the $1,300 range. Many of the analysts are discussing the fact that nothing has really changed in the gold market from the time that it reached a high over $1,200. All of the fundamentals remain the same in terms of supply and demand, inflation expectations, easy monetary policy and an overall downward trend in the dollar. Nevertheless, when you get to year-end and traders want to book profits to secure their bonuses, you very often see that resulting in a pull back or correction and consolidation regardless of the market.

That is why so many of the prominent investors and analysts are looking at gold as a buying opportunity. Goldline clients have an additional advantage that most do not because Goldline offers a Price Guarantee Program. That program provides you a two-week window of opportunity to re-price your order in the event of a correction after you make your transaction. You should speak to the folks at Goldline to see whether your transaction will qualify for that PGP program. Call Goldline now at 1-877-341-2646. Be sure to ask for the free information package that will provide you with valuable information on the metals markets and be sure to read all of the risk disclosure materials. Call Goldline at 1-877-341-2646.

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 purchase. Call Goldline at 1-877-341-2646 now to receive your free gold investors package.