METALS UP AGAIN

Gold and silver are both higher today, with gold up $2 and silver up $.15, as the dollar is down 19 basis points at 79.94. Oil is also rebounding, up $.97 at $60.66 a barrel. The inflation data on producer prices was supportive of the metals market. The June PPI was up 1.8%. That would be equivalent to a 21.6% annualized rate of inflation. Producer prices jumped on broad-based gains on everything from gasoline to automobiles, furniture, drugs and even vegetables. This is further confirmation that the risks of deflation have receded and that inflation may be the principal concern going forward. The data included a sharp jump in the CORE producer price index of .5%. That is equivalent to a 6% inflation rate. If we see a persistent 6% inflation in the CORE rate, I think you will see gold make a large move to the upside. Inflation data of that magnitude, if carried forward, would certainly produce much higher gold prices, perhaps in the $1,100 plus range. However, producer prices were down 4.6% from one year ago. In other words, the economy has been in a severe deflationary environment, but that seems to be turning back to an inflationary environment.

With continuing sluggishness in the U.S. and global economies, last month's inflation increases may not be repeated over the course of the year. However, overall, I think we will see inflation data moving higher even if the economy remains in the doldrums. This would be consistent with the stagflation that we saw in the 1970s, which ultimately lead to a massive inflationary burst before it was all over. Retail sales fell 1.7% in the first week of July. They were also down 5.7% from last July.

Turning back to the precious metals, the market conditions remain thin and gold remains within a well-defined trading range. However, it may be in the process of moving to the upper end of that trading range. A breakout on the upside would mark the conclusion of the overall corrective process. For the moment, gold needs to overcome resistance at $930 an ounce, according to Standard Bank. Once the markets move out of the summer doldrums period, which usually represents the cyclical low of the year, then we will likely see gold making a sustained move to the upside. Merrill Lynch and others have forecast that we will see gold back above $1,000 an ounce in the October/November timeframe. Year-end forecasts by a number of analysts are in the $1,100 to $1,200 range.

Consequently, this is a great opportunity to get into the precious metals markets for protection of purchasing power, safety and other reasons. Call Goldline today at 1-877-341-2646 for assistance in getting started. Be sure you ask for the free information package. It contains articles that discuss the potential for a move towards a new global reserve currency and even the possibility of a new global transactional currency.

At the G8 meeting, members including President Obama were presented with the new Euro-Dollar gold coins. They said these coins have a value of $3,900. I suspect this is a precursor to a new global reserve currency. The members of the G8 certainly knew this and probably knew these coins were going to be given to them. At some point in time, it may make a great deal of sense to have a global transactional currency that would enable all of the G8 countries to enter into a coordinated devaluation and return to a more stable form of transactional currency. Do not discount the possibility of such an event. Put together the pieces of the puzzle by reading the articles by Forbes.com on formal dollar devaluation, combined with the articles discussing major nations' demands for a new global reserve currency and the photographs we are including of the new currency and coins that were introduced at the G8. Put these all together and it paints a picture of a new global transactional and reserve currency developing. This would be a once-in-a-lifetime profit opportunity for investors who understand these developments and take the proper steps to benefit from them. Call Goldline at 1-877-341-2646 to receive this free information package.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver investments that are available to you. 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, 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, 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.