MARKETS TRADE NEAR UNCHANGED

Gold started the day in positive territory, opening with a gain of about $3 before slipping back into the near unchanged levels. Silver, likewise trading at about unchanged. Oil is down $1 on a build in crude oil inventories around the globe. The dollar is trading at about unchanged and the Dow Industrials are up 45 points. Thus far it seems to be a fairly quiet and uneventful day. The markets are likely to trade near unchanged, but in thin market conditions for the metals you might see traders see how much strength there is at the $880 support level. Overall it is shaping up to be a day of light trading with the potential for some exaggeration in price movements in the metals. With the Dow rallying this morning, there seems to be less safe haven demand for gold and the dollar.

Yesterday, the Gold Fields Mineral Services report indicated that they expect gold to rise above $1,000 in the very near term and above $1,100 over the next several months. That is consistent with the forecasts of Bank of America/Merrill Lynch and other analysts around the globe. They pointed out that central bank sales last year fell 49%. This year we are seeing a similar situation with central banks selling very little gold. In fact, last week the European central banks gold reserves rose 24.1 billion due to a revaluation of the reserves. Moreover, mine supply continues to decline. Last year, mine supply was down 3%. It is likely that mine supply will be down at least that much this year. Rob McEwen, an enormously successful gold miner, said gold will rise to $2,000 by the end of 2010 and to $5,000 by 2012 to 2014.

Looking at the supply/demand fundamentals, gold begins to look very attractive. It should be accumulated on this dip and correction as it remains in a major bull market. The Aden Sisters have commented that while gold remains in a declining cycle in the overall bull market, the upside potential is now looking even stronger. All economists are looking at the tremendous amount of money that has been created by the U.S. government and the Fed. The bailout programs totaling tens of trillions of dollars and the fact that the IMF says the banks still have $4 trillion in toxic assets on their books. All of these factors taken together suggest that in time we will see a very aggressive period of inflation. Economists echo this view as they forecast inflation rising significantly. For example, last week a highly regarded economist commented in the Wall Street Journal that he sees inflation rising to between 8% and 10% over the next three years. At 10% inflation rates, I suspect gold will be making new all time record highs. That is what happened the last time inflation reached those lofty levels.

In the April 13th issue of Forbes Magazine there is an article entitled "Prepare for Inflation." They ask the question, "So what should you do to protect your capital? Gold is an obvious answer …."; they also said, "The most important question is when inflation will begin. My guess is that the current deflation, driven by inventory liquidations, will be over by year-end. If inflation returns in 2010, as I expect, the time to buy defensive securities is not then but now. By the time inflation is here, it may be too late."

Another article from Yahoo Finance says, "Conventional wisdom tells us that gold is a good investment tool to hedge against inflation. The current market landscape is setting the stage for a shining moment for gold that could quite easily last several years. With our government flooding the economy with dollars, inflation is a near certainty … a close examination still reveals that gold could be the greatest beneficiary. Indeed, some big money players are piling in with the long-term view that gold could reach $2,000 an ounce or more in the next year or two."

Given analysis such as this from major publications, it seems wise to accumulate some gold in preparation for and protection from rising inflation pressures. By definition, inflation is the increase in money supply. That is occurring right now. The affects of that inflation are rising prices. That will take some time, perhaps the next year or two. Moreover, there is a clear potential for formal devaluation of the U.S. dollar. Forbes.com has published two articles discussing the need for formal devaluation of the dollar. If that were to occur, it would be a sudden and overnight event that you would not have time to prepare for. Therefore, investors need to have their gold diversification in place now. You should be accumulating gold or adding to your holdings at this time, while gold is in a correction and consolidation mode.

Call Goldline at 1-877-341-2646 for information on getting started. You should ask Goldline about their Price Guarantee Program, which provides a two-week window of opportunity to re-price your transaction in the event of a correction. This is a valuable tool. You should see if your transaction qualifies for the Price Guarantee Program. In addition you can receive the free information package, including articles you will find extremely helpful and informative. There are several articles discussing the proposals for a new global reserve currency. This could have a significant impact on all Americans and yet most people are totally unaware of it. There are also articles that discuss inflation, precious metals and other markets. You can have a free copy of the CD interview I did with Frank Barbera. He is a well-known market analyst and is paid for his services and providing information and advice. You could have his information and advice for free simply by asking for the free CD. We will also give you a free copy of the American Advisor Newsletter, a $25 value for free. Call Goldline at 1-877-341-2646 for your free information package.

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.

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.