METALS SHOWING STRENGTH

The correction in precious metals continued today, with gold dipping below the $950 level. Silver also pulled back fairly aggressively as traders test support in both of these markets. However, in the first half hour of trading the metals recovered the early losses to trade near important support levels. Gold came from a low of $942.50 back to $950. Silver came back from $14.93 to $15.45. Consequently the metals are showing some strength in the face of another round of liquidation by funds. Most of this trading is purely technical in nature as support and resistance levels are being challenged. Some support is being seen from the fact that the dollar is down 34 basis points at 79.98. Support also comes from higher oil prices, with oil up $.95 at $72.27 a barrel.

Clearly, we are going to see inflation pressures emerging in the near term. The question is when will the economy recovery sufficiently for those pressures to emerge. It may take a year or two, however, many are prudently buying gold and silver in anticipation of that event. There is also a great deal of concern about the future of the dollar. Yesterday, Russia and Brazil announced that they are going to reduce their dollar reserves further. That is a negative event for the dollar. It more than likely confirms that all of the BRIC's nations are doing the same thing. Certainly they are collectively calling for a new global reserve currency. In addition, you have China now instituting trade with many of its trading partners in Chinese currency rather than dollars. All of that is negative for the dollar over the next several years.

The Wall Street Journal published an article yesterday, written by famous economist Arthur Laffer. The headline is "Get Ready For Inflation And Higher Interest Rates. The unprecedented expansion of the money supply could make the 70's look benign." In the article he said, "It's difficult to estimate the magnitude of the inflationary and interest rate consequences of the Fed's actions because, frankly, we haven't ever seen anything like this in the U.S. To date, what's happened is potentially far more inflationary than where the monetary policies of the 1970s when the prime interest rate peaked at 21.5% and inflation peaked in the low double digits. Gold went from $35 per ounce to $850 per ounce, and the dollar collapsed on the foreign exchanges. It wasn't a pretty picture."

If the gold market were to make a similar move from its $250 low, it would result in a gold price of $6,072. Whether this may occur or not is beside the point. The key issue is that with inflation rising gold is likely to make a substantial move to the upside. Moreover, with the dollar in serious trouble, we could see even more aggressive increases in the price of gold than might otherwise occur.

These are some of the many reasons why sophisticated investors are accumulating gold at this time. Everyone should take advantage of the opportunity to afford themselves some protection from the inflation that is likely to emerge down the road along, with the potential for a significant decline in the dollar. It is easy to get started with gold. Call Goldline at 1-877-341-2646 for assistance and information on getting started with gold. Ask Goldline to explain their Price Guarantee Program to you, which provides you with a two-week window of opportunity to re-price your order in the event of a correction. All of this is helpful to today's investors.

Goldline will also be happy to send you a free information package, which contains excellent information and articles on the dollar, precious metals, the economy, the potential for a new global reserve currency and potential for formal devaluation of the dollar. All of these factors are critically important to every investors, no matter what assets you own. Call Goldline at 1-877-341-2646 to receive 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, 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.