PRECIOUS METALS ARE MIXED

The precious metals are mixed with the dollar higher, up 39 basis points to 78.35. Gold is up $1.30, which is an outstanding performance given the fact that the dollar is stronger and oil is slightly weaker. Silver has eased back from some of its gains yesterday. It would appear that the precious metals markets are showing extraordinary strength at this point in time. Especially since equities are also lower, with the Dow down 16 points at 9,481.

Last week European Central Banks reserves of gold increased two million euros. That is the first time in the past 10 years (that I can recall) the European Central Bank increased its reserves. As you may recall, they have been under an agreement, which allowed them to sell 500 tons of gold a year. The current agreement expires at the end of this month. Under the present agreement, about 140 tons out of a potential 500 tons have been sold. Obviously, they are not likely to even reach 150 tons of gold under this years agreement. That suggests the gold market is very thin and supply is declining while demand is on the increase. That is a fundamentally bullish situation for gold.

We are now in the seasonally best month of the year for gold. September, October and November are generally positive price performance months, with September being the best over the past 20 years. Since 1989 September has been the best month out of the year in 16 out of the past 20 years. Many analysts expect silver to post excellent price performance and through November. Barclay's Capital said they believe gold may rise above $1,033 this month. With gold still trading below $1,000 an ounce, many of the major analysts, including Merrill Lynch, Fortis Bank, Standard Chartered Bank, JP Morgan/Chase and many others are forecasting gold will be over $1,000 an ounce this year.

Investors have a bargain buying opportunity. Some analysts such as Jim Sinclair believe gold presents the buying opportunity of a lifetime at these levels. In my view, gold should be a part of everyone's portfolio as an asset that will serve to insure against crisis and protect purchasing power. In the troubled financial environment that we find ourselves in today, gold certainly is an asset that merits careful consideration.

There is news out of China that Chinese state owned companies will be allowed to default on commodity derivative contracts. This provoked a lot of uncertainty among investment banks that do business in China in the derivative markets. If this proves to be an accurate stance by the Chinese government, then there could be massive derivative problems in China and other parts of Asia. A crisis of that magnitude could lead to an enormous increase in the demand for gold.

There are also some editorials considering the possibility that Israel may attack Iran's nuclear facilities, if Iran refuses to cooperate with the international community. If that were to occur, it would likely have significant geopolitical consequences that would also be bullish for the gold market.

Given these and many other factors, investors should contact Goldline at 1-877-341-2646 for information on investing in gold and silver assets. Silver is very attractive as the CEO of Coeur d'Alene Mines has forecast that silver will reach $18 this year. All of these constructive forecasts are helpful for today's investors. Ask Goldline about their Price Guarantee Program, special offers that may be in place today, and information on putting gold or silver into IRA and 401(k) rollover accounts.If you would like to receive the free information package, which contains excellent articles discussing the U.S. dollar and the potential for formal devaluation that could affect every American, along with information on investing in precious metal assets, call Goldline 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 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 a purchase. Call Goldline at 1-877-341-2646 now to receive your free information package.