PRECIOUS METALS CONTINUE TO CORRECT

Gold and silver fell back again this morning, pressured by a stronger dollar. Gold is down $6.30 and silver is down $.57. Silver is outperforming gold on the downside as well as the upside, as I have warned so many times. Nevertheless, gold continues to hold above the $930 support level. Whether that level will hold, remains to be seen. At this point, you would have to say that gold is vulnerable to test down to the $890 to $900 range.

The dollar rally is due to the statements by the Russian Finance Minister at the G20 meeting over the weekend. He said at the moment there is no alternative to the U.S. dollar. The very fact that they are discussing alternatives to the dollar is evidence of the fact that the dollar is in weak condition and that alternatives are being sought out. Clearly there are recommendations to move to a new global currency. Even statements by Paul Volker and others suggest that while there is no alternative to the dollar now, there may be at some point in the future. In fact, the alternative to today's dollar could very well be a new dollar with some form of precious metal backing. We do not know how this will play out. However, there is little doubt that the amount of debt being accumulated by our government cannot be financed or sustained over the long term. While the administration makes lots of noises about reducing the deficits, all of their proposals seem inclined to do precisely the opposite. The latest push is for health care reform. While that is badly needed and is probably the only solution to the Medicare crisis, it will be an expensive proposition that the country can ill afford. That won't stop the politicians from pushing forward with it in any event.

The stronger dollar has influenced all commodities. Oil is down $1.21, and the equity market isn't doing any better down 141 points on the Dow. One of the reasons that silver has fallen more than gold are concerns that the economy is weakening and silver is used as an industrial metal and may be likely to decline. However, I think silver's performance hinges more on that of gold. It is likely to move in the same direction and there are a number of analysts who think silver will outperform gold over the next few years. Bear in mind that today's correction in the gold market and indeed the correction of the last couple of weeks is not unique to gold. The entire commodity complex including oil has experienced the same type of correction in reaction to a stronger dollar. Many analysts continue to have the view that gold is a buying opportunity at these levels. Remember, Larry Jeddeloh said he is looking to be a buyer between $910 and $950.

In the meantime, the government is looking to close the barn door after the horses are out. They are again proposing an overhaul of the financial regulatory system in an effort that is designed to prevent another reoccurrence of the financial crisis. That's the same thing they did after the '29 crash. However, the '29 reforms were repealed by congress during the Clinton and Bush administrations. Geithner also warned that unemployment is going to continue rising. That's the same type of comment that was made by Vice President Biden over the weekend. One wild card might be the situation in the Middle East. The elections in Iran are subject to some dispute at this point. Those who do not like the outcome are challenging the legitimacy of the election. Whether the elections were legitimate or otherwise, the fact that they are confirming Mohmoud Ahmadinejad is sufficient reason to wonder whether Israel will act sooner rather than later to take out their nuclear facilities. This could throw a wild card into the economic outlook. It could also provide a huge reason for investors to accumulate more gold.

While this corrective and consolidative process continues, it is difficult to maintain a steady hand. However, those who are looking at the fundamentals should continue to focus on the excellent opportunities that exist in the metal markets. Many investors may wish to accumulate gold at this opportunity on the correction process. Call Goldline at 1-877-341-2646 today for assistance getting started. Also be sure to ask about Goldline's Price Guarantee Program. That program may provide some comfort for today's investors. It will provide you with some price protection for a limited period of time. Therefore, call Goldline at 1-877-341-2646 and ask about the details of that offer.

Investors should also ask for the free information package. You will find outstanding information on the markets and on the many developments that are occurring in the financial environment. This information will be very helpful for all who obtain it. Be sure you read the articles about the development of a new currency, formal devaluation of the dollar and other items of importance to all investors. Don't wait to get the free information package. Call Goldline at 1-877-341-2646.

Investors should ask Goldline 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.