METALS SOLIDLY HIGHER

Precious metals are solidly higher this morning, with gold up nearly $3 and silver up $.18. Platinum and palladium are also making extraordinary moves of late with platinum up $30 and palladium up $9. The metals are turning in a strong performance given the fact that the dollar is up 44 basis points. That means gold is rising in terms of all currencies on a global basis. It also is indicative of a very strong market. Overnight gold reached as high as $1,140.70 on the February contract. It is noteworthy that silver continues to outperform gold, which is to be expected in a bull market. Silver has a monetary component, but also an industrial component, which is being helpful at this point.

Gold is benefiting from the problems with the sovereign debt of Greece. Analysts believe that concern about the soundness of Greece's finances is boosting gold as a safe haven asset. From the early indicators, the European community is not going to help Greece or any of the other countries that are in serious jeopardy of defaulting on sovereign debt. They would include Portugal, Ireland, Italy and Spain, among others. There is some serious concern that one or more of these countries will attempt to withdraw from the Euro Union so that they can issue their own currencies, which could then be devalued, thereby reducing some of the burden of their debt. If that were to occur, it could leave the European community in a state of serious disarray. The European Central Bank is actually preparing for the possibility that one or more countries will attempt to secede from the union. Such an event would obviously have considerable legal as well as geopolitical consequences.

In addition, you have sovereign debt problems in the United States. The state of California is in a similar position to Greece. It has a $19.5 billion budget deficit that it cannot deal with. It does not have the option of devaluing its currency because it's not allowed to issue currency. These are serious issues that should be taken into consideration by all investors. When we look at the finances of the U.S. government itself, running deficits of a trillion to a trillion and a half a year as far as the eye can see, with a debt build up of $12.5 trillion soon to be $14 trillion, it becomes a serious issues as to whether there will come a point in time where the U.S. will be forced to more rapidly devalue its currency.

These are among the many reasons why analysts believe gold will move to new record highs this year. In this week's Barron's Magazine in the Barron's Round Table which consists of some of the smartest most successful market analysts and investors in the world, you have people like Fred Hickey saying that he sees gold rising to as high as $1,600 an ounce this year. Felix Zulauf said that he sees gold outperforming stocks over the next five years and believes that over the next several years it will surge and trade for a "few thousand dollars an ounce." Moreover, the research investment community of BofA/Merrill Lynch said this past week that they see gold rising above $1,500 an ounce by early 2011. Goldman Sachs is forecasting an average price of $1,265 this year and $1,425 next year. They have raised their forecast to $1,200 in three months, $1,260 in six months and $1,350 in 12 months. Many other analysts have similar forecasts for the precious metals sector.

Given these forecasts it would seem appropriate for investors to consider investing in precious metal assets at these bargain-basement levels. The upside potential is substantial and the downside risk appears to be somewhat limited. That is particularly true if you utilize Goldline's Price Guarantee Program. Call Goldline at 1-877-341-2646 and ask them to explain the details of that program to see whether you may be able to take advantage of it. Ask Goldline for the free information package about investing in gold. You will also get a free DVD, a free copy of the American Advisor Newsletter, and articles and reports quoting major banks and brokerage firms on their analysis of these markets and their expectation for prices over the coming year. Call Goldline now to receive the free information at 1-877-341-2646.

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 investing 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.