PRECIOUS METALS UP AGAIN

Gold and silver are both higher this morning, with gold up $3.50 and silver up $.17. That is largely in reaction to a weaker dollar, down 17 basis points. Oil is down $.31. The bounce in precious metals came after a down tick in the dollar in reaction to news that Dubai received a $10 billion bailout from Abu Dhabi, resulting in more risk appetite and weakening the dollar, according to a London based analyst reported the Dow Jones Wire Service. Neal Meader, Research Director at GFMS told Dow Jones Wire Service that silver may continue to outperform gold next year, returning the metal to a ratio in the fifties from its present level in the sixties. He refers this as "a gravitational pull back to the average."

Most people think gold has outperformed silver over the course of this year, however that is not actually the case. Silver has risen about 52%, while gold has risen roughly 27%. Both are outstanding gains, but we can see that the gold to silver ratio is narrowing, moving back towards historic norms. Consequently, silver continues to look like an outstanding value, as does gold. Dow Jones Wire Service also reported that Asian nations are particularly strong buyers of gold at this point. Much of that is for jewelry. The demand for physical gold from Asia, including India and Vietnam seems to be a principal factor providing support to the markets. With gold having pulled back from the lofty $1,200 level, these countries have emerged as buyers once again.

While it is too early to determine whether this period of correction and consolidation has fully run its course, nevertheless the long-term outlook for gold remains very positive. If one looks at the forecasts for next year from BofA/Merrill Lynch, you will see they are bullish on gold and expect it will reach above $1,500 an ounce within 18 months. Their forecasts have been consistently on the low side. Other major banks likewise see gold making big moves to the upside. Therefore, as some analysts have said, the risk to reward ratio favors gold and silver investing at this time.

To get started with gold or silver or to add to your holdings, call Goldline at 1-877-341-2646. Ask them about their Price Guarantee Program, which provides a two-week window of opportunity to re-price your order in the event of a further correction. This feature has helped many investors to re-price their orders to a more favorable level during this period of correction and consolidation. Those who would like to receive a free copy of the BofA/Merrill Lynch report or other reports that are included in the free information package, call Goldline at 1-877-341-2646. If you are a client, a new investor or perhaps even someone who has gotten the free information package before, you should ask for it again. There are new articles and lots of new information that can be helpful to all investors. Call Goldline at 1-877-341-2646 to receive your free information package.

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

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-877-376-2643.

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