GOLD MARKET IGNORES STRONGER DOLLAR

Gold and silver are starting out the day with a positive gain as gold is up $10 and silver is up $.19. Both are up in spite of the fact that the dollar is up 10 basis points and oil is unchanged at $81.77 a barrel. Equities are soft this morning.

The gold market is reacting to a number of factors and ignoring the stronger dollar. Among them is the news that the ECB will apparently not bail out the country of Greece from its economic troubles. Moreover, treasury prices are lower meaning interest rates are rising ahead of the ISM's non-manufacturing index. Higher interest rates are good for savers. However, they are negative for borrowers. Cold weather throughout much of the U.S., Europe and Asia is affecting energy prices. That is why oil is trading near $82 a barrel. Be mindful that BofA/Merrill Lynch has been forecasting oil to rise above $100 a barrel this year.

In the gold market we see safe haven demand for gold and fresh fund acquisitions offsetting the stronger dollar. Gold is now trading near a three-week high. Dow Jones Wire Service reports: "Investors are buying gold as a hedge against what they see astroubled currencies, including the euro, the pound and the dollar. People don't like any currencies particularly."

If the ECB is not going to support the country of Greece because it has failed to control its government spending and deficits, will the day arrive when countries, particularly China, Japan and other Asian nations, will refuse to support the U.S. government in its profligacy? Some think that day is inevitable.

The latest jobs report from the ADP survey showed that service providers added 12,000 employees in December. This was the first gain for that sector since March 2008. While the unemployment situation may begin to show some improvement, most analysts and economists seem to believe that the jobs market will remain weak throughout the year. In the overall ADP report there was a drop of 84,000 jobs in private sector payrolls. They had expected a 90,000-drop. Unemployment is continuing at high levels and we continue to lose jobs at a rapid rate. That is one of the factors that is expected to keep the Fed pumping money into the system and the government continuing to provide economic stimulus to the economy. The ADP jobs report also provided some further support to the gold market.

Money manager Steven Dent told CNBC this morning that he believes the stock market will move sideways for the next ten to twelve years due to the maturation of the baby boomer generation. He shockingly said that he thinks the Dow will range trade between 4,000 and 11,000. Of course, the talking heads were very skeptical of such a forecast.

Turning back to Europe, the ECB's reserves of gold and gold receivables increased 28.8 billion euros last week. Obviously, rather than selling gold the European system is a net buyer of gold this year. Most analysts expect that trend to continue. The World Gold Council reported that they expect gold to have a very strong year in 2010. "Many of the drivers of demand and supply behind gold's eight-year bull market remain in place." They said further that a combination of reduced mine production combined with increased global demand should keep gold prices moving higher. "We expect absolute levels of investment demand to remain strong, supported by continued economic and currency uncertainty, especially fears about future inflation, emanating from rapid money supply growth, and dollar weakness … moreover, despite rapid investment inflows in recent years allocations to gold remain lowas a percentage of total global assets and there is ample scope for further growth."

Clearly, some of the most knowledgeable sources in the precious metal industry believe that gold will continue to perform exceptionally well. Lawrence Eagles of JP Morgan forecast that gold will reach $1,400 anounce by the second quarter of this year. Mark Faber is looking for gold to go to $1,500 an ounce near-term and possibly $5,000 over the longer term. BofA/Merrill Lynch continues to hold to their forecast of $1,500 an ounce.

Given this information, it would appear that gold and silver are excellent buying opportunities at these levels. If you would like to accumulate or acquire gold or silver, call Goldline at 1-877-341-2646 for assistance. You should ask them to send you a free information package, which will contain a free copy of the American Advisor Newsletter. In that newsletter, you will find an article written by Philip Klapwijk. He has just won a contest of bullion market analysts having the most accurate forecast for the price of gold and silver over the course of 2009. He forecast that gold would average $970 an ounce, and it came in at $973. His prediction on silver was for an average of $14.40 an ounce and it averaged $14.65. You should read Mr. Klapwijk's logic and reasoning in his expectations for gold and silver prices this year. The newsletter also contains other information that you will find interesting and informative. In addition, the free information package contains several articles from major banks and brokerage firms and information on the potential for a significant decline in the value of buying power of the dollar, along with forecasts for the performance of gold, oil, the dollar and indications that may affect your decisions with regard to other assets. Call Goldline at 1-877-341-2646 to receive the free information package.

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, 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 information package.