METALS CONSOLIDATE ON PROFIT-TAKING

Gold and silver both fell sharply in a profit taking pull back. Gold is trading down about $18 in early trading and silver is down $.25. Gold was on a defensive overnight as European and Asian market participants were booking profits, after gold rallied to $930 but did not penetrate that resistance level. Leonard Kaplan told Dow Jones Wire Service that gold should find support in the low to mid $890s. Andrew Montano of Scotia Mocatta Bank told Dow Jones Wire Service, " His firm remains bullish on gold." Montano also said the gold to silver ratio is narrowing rapidly and said this favors silver as the investment choice. The dollar is quite weak especially against the euro. The dollar is down 85 basis points at 84.50. With a weak currency, normally you would see gold prices going up. The action we see today is more likely representative of profit taking and technical selling after a failure to penetrate resistance.

Fund buying continues to support gold and ongoing troubles for GM and Chrysler along with the uncertainty about a potential bank bailout remain on the front burner. There are rumors that GM and Chrysler will be pushed into bankruptcy by the U.S. government so that the government can protect its $19 billion in loans. This combined with Nissan's announcement of 20,000 job cuts made the markets nervous.

Treasury Secretary Tim Geithner was supposed to give a presentation today on the "new bank rescue plan." However, that presentation was delayed until tomorrow. The delay is likely due to the fact that Congress has yet to pass the stimulus plan. I doubt they want to go to Congress asking for more money, perhaps over a trillion dollars, at a time when the stimulus has yet to be passed. Some analysts are saying they are going to make unprecedented use of the Federal Reserve to put perhaps several trillion dollars more into hedge funds and the banking system. This is a game of smoke and mirrors that is likely to end badly. You cannot have the Fed creating so much money out of thin air without having consequences for the currency and for the creditability of the Central bank itself. Perhaps the credit worthiness of the Fed will come into question.

The head of the International Monetary Fund said they think the major governments of the world need to dramatically increase fiscal stimulus and monetary stimulus in order to avert an all out collapse of the financial system and a full blown "Great Depression." There are many people including the IMF referring to this crisis as another depression. However, there are some differences and some similarities. The longer the economy struggles without any meaningful rebound, the more likely it is that the deflationary pressures will overwhelm.

On the economic front, the trend for employment continues to weaken. We saw a dismal report on Friday with over 600,000 jobs lost in January. Now, add in the losses from Nissan and others and you will see a continuing deterioration of the jobs market and the economy in general. Merrill Lynch said that "real unemployment" is 13.9%.

Standard Charter Bank sees gold averaging $950 the 2nd quarter, $1,000 in the 3rd quarter and $1,050 in the 4th Quarter. Given the longer-term outlook this year for gold to be above $1,000 an ounce, I think gold presents an excellent buying opportunity at these levels. Those who are nervous about further correction can take advantage of Goldline's Price Guarantee Program with certain gold assets. That program allows a two-week window of opportunity to re-price your order lower to get more gold or silver for your money. Or, if you prefer you can have free shipping. The combination of those two special offers gives investors some flexibility in determining how they wish to approach their precious metal investment. Call Goldline as ask about their special offers at 1-877-341-2646.

I strongly recommend investors call for the free information package. Goldline is continuing to offer the CD interview with Frank Barbera. This is free for anyone who asks for it. If you are a client or a person who has asked for free information in the past, but you have not received the Barbera interview, I think it is important that you ask for it and listen to it carefully. There are several new articles in the free information package. Some quote Goldman Sachs, who is forecasting gold will rise to $1,000 in the next three months. Some articles quoting UBS Bank who is forecasting gold to average over $1,000 an ounce this year. You will find articles that are very helpful including an article from Forbes.com in which they suggest the dollar should be formally devalued in order to work our way out of this economic malaise. All of this information is new for most people and it is the kind of information you should have in making your overall investing decisions. Call Goldline at 1-877-341-2646 to get the 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 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, 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 and how you may be able to receive free coins.

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.